Adedeji: FG Not Introducing New Taxes, Only Harmonising Existing Laws
Juliet Akoje in Abuja
The Chairman of the Federal Inland Revenue Service (FIRS), Zack Adedeji, yesterday said that the tax reform bills recently presented to the National Assembly were not aimed at increasing taxes or introducing new taxes into the nation’s tax books.
Adedeji said the four tax reform bills aim to harmonise all tax laws scattered in different tax laws and establishment bills.
Speaking at a meeting with the House Committee on Finance ahead of the second reading of the bills, he said it was also not aimed at merging any government agency and that it will not lead to any loss of jobs.
He said: “We want to harmonise all the tax laws because we have tax laws scattered in different tax books and different establishment laws passed. The implications of that is the multiplicity of taxes that people talk about because each agency that has tax law must implement that tax law.
“ No agency is superior to the other and you cannot ask one agency not to carry out the order. So, Mr. President saw that this is not good for the economy and the only way to do that is to harmonise all the tax laws and have them in one place
“The other reason is to organise the fiscal framework in the country. As we stand today, there is no law anywhere to actually regulate or monitor cryptocurrency. We are in a global community and there is no way we can exclude ourselves from what is happening globally. So, it is to organise the fiscal efficiency in the fiscal framework”
Adedeji further said that there was need to synergise all revenue collecting agencies and ensure efficiency in government spending, but noted that it was not meant to merge the agencies.
“For example, prior to the implementation of TSA, government will have money in one bank and be borrowing from another because we don’t have the holistic view. But when TSA was implemented, it gave us a holistic view of where government monies are. With that, you will not have money on one bank and be borrowing from another.
“Another principle is to improve the transparency and integrity of revenue collection and there is nothing that we will do than understanding the laws so that they will be very simple to comply with.
“We also want to complete out tax laws in other to represent the current realities that we have. Currently, we are using the tax integrity test of 1939 when there was no internet, no online shopping. In other to align ourselves with current realities, it is the wisdom of Mr. President that all these bills be implemented. We also want to align ourselves with international standard,” he stated.
To make Nigeria a destination for investment, where people will consider where will give them the best return on their investment, he argued that one of the things to consider is the fiscal framework for this destination.
“So, in other to align ourselves with the international standard and attract investment into Nigeria, Mr. president presented these bills. It is also aimed at broadening our tax laws. Mr President has said he is not interested in taxing poverty and inflation
“We will never increase either the rate or the number of taxes. In fact it is the belief of the president that the taxes we have now should be harmonised and then, we should have less than two digital types of taxes.
“This is what has been put together in the bills that have been sent to the House. In terms of the structure, first is to have the Nigeria Tax act which will harmonise all tax laws in the country and put them in one book. What this will do is that all the multiplicity of taxes will reduce because we will now have them in one book,” he pointed out.
He started that it was the wisdom of the President that this is what Nigeria needs at this time to lay a foundation for a solid economy.
The Chairman of the House Committee on Finance, James Faleke said the aim of the meeting was to give members a first hand information on the necessity of the bills so that they can make informed contribution when the bills come up for second reading.
