JUST IN: FG To Streamline Taxes From 52 To 10 (DETAILS)

JUST IN: FG To Streamline Taxes From 52 To 10 (DETAILS)

The federal government announced its plan to streamline taxes from 52 to 10 in the near future, aiming to improve efficiency and accountability.

This was disclosed by Zacch Adedeji, the special adviser to the president on revenue, during the virtual TOPAZ 88 second lecture series titled “Revenue Challenges and Opportunities in Nigeria Today.”

Adedeji highlighted that the multitude of taxes in Nigeria has led to challenges in compliance and trust in tax payments. The current administration’s goal is to focus on taxing prosperity rather than poverty and to tax the results rather than the initial investments.

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The government intends to establish a tax committee that will oversee the simplification of the tax system.

The rationale behind this move is to enable regulators to focus on regulations, while agencies responsible for tax collection can concentrate on their specific duties.

For instance, NIMASA, which is tasked with securing waterways, should not be involved in freight duty collection, a responsibility that belongs to the Nigerian Ports Authority.

By harmonizing and streamlining taxes, the government aims to reduce leakages and have a better understanding of its revenue.

Additionally, once the Senate establishes its standing committees, the Federal Inland Revenue Service (FIRS) will be renamed to the Nigerian Revenue Service.

The name change is intended to consolidate all taxes due to the federal government under a single entity and prevent duplications.

The government also plans to utilize technology to enhance the effectiveness and accountability of its tax collections.