President Bola Tinubu may bar revenue-generating agencies from collecting revenues on behalf of the Federal Government, as he plans to introduce a single agency Nigeria Revenue Service to handle the task.
This came as the Federal Government instituted a comprehensive set of fresh tax reforms aimed at significantly boosting revenue collection.
The reforms, designed to enhance the efficiency of collecting direct taxes, along with various levies that are imposed on behalf of the government, will bar the Nigerian Customs Service, Nigerian Ports Authority, (NPA), and 60 other revenue collection agencies from participating in revenue collection activities, but will lead to the creation of the Nigeria Revenue Service.
By implementing these changes, the government seeks to streamline the tax collection process, ensuring that all taxable entities contribute their fair share and that the revenue generated is maximised to support public services and infrastructure development.
The policy directive was instituted on Thursday, when the President forwarded four executive bills to the National Assembly for consideration, aiming to implement significant tax reforms.
One of the key proposals is the renaming of the Federal Inland Revenue Service, (FIRS) to the Nigeria Revenue Service. A source at the Presidency, however, hinted that the new Bill would not lead to a merger but seek to remove the revenue collection arm from the agencies and allocate its function to the Nigerian Revenue Services.
The Bill seeking the name change for FIRS was outlined in a letter read by Senate President, Godswill Akpabio, and the Speaker, House of Representatives, Tajudeen Abbas, during the plenary sessions.
The proposed law, titled: “The Nigeria Revenue Service (Establishment) Bill”, seeks to repeal the Federal Inland Revenue Service (Establishment) Act, No. 13, 2007, and establish the Nigeria Revenue Service.
According to Tinubu, the new agency will be responsible for assessing, collecting, and accounting for revenue accruing to the Government.
In addition to the name change, Tinubu submitted 3 other tax reform Bills, under the title: Transmission of Fiscal Policy‘ and ‘Tax Reform Bills to the 10th National Assembly. The President also transmitted to the parliament the Joint Revenue Board Establishment Bill, which seeks to create a Tax Tribunal and a Tax Ombudsman.
Tinubu emphasised that the proposed tax Bills would have far-reaching benefits for the country, promoting taxpayer compliance, strengthening fiscal institutions, and fostering a more effective and transparent fiscal regime.
On the floor of the House of Representatives, Speaker, Abbas, confirmed receipt of the bills, stressing that they were designed in line with the objectives of the present administration.
