The Federal Inland Revenue Service (FIRS) involves industry leaders in tax discussions. On Wednesday, the Executive Chairman of the Federal Inland Revenue Service, Zacch Adedeji, delivered a compelling address on Nigeria’s recent tax reforms. Industry leaders engaged in a thought-provoking discussion, examining both the progress made and the potential drawbacks. Adedeji, represented by Oti Olaniyi, the Acting Director of the Medium Taxpayers Department, South, described the restructuring of FIRS as a shift towards customer-centricity, aimed at enhancing efficiency and responsiveness. The chairman of FIRS made this statement during the Organised Private Sector Stakeholders’ Engagement on Emerging Tax Matters, hosted by the Lagos Chamber of Commerce and Industry. Adedeji emphasized the agency’s groundbreaking transformation, highlighting the decentralization of operations, implementation of cutting-edge technology, and the streamlining of tax services. This included the introduction of the revolutionary ‘TaxPro Max’ platform, designed to simplify tax filing and bolster compliance through seamless e-filing, e-reporting, and other innovative digital solutions. FIRS is dedicated to delivering customer-focused services aimed at enhancing voluntary compliance and increasing revenue generation,” he stated. According to the FIRS boss, the agency’s new structure comprises three operational groups—small, medium, and large taxpayers—to better address the needs of various taxpayer segments. He stressed the need for the agency to expand the tax base, due to Nigeria’s heavy reliance on oil revenues. This is a way to encourage diversification into non-oil revenues to address infrastructure needs and boost the economy. The chairman of the FIRS restated the plan to introduce a simplified withholding tax system for small businesses and reduced rates for low-margin enterprises. This is aimed at reducing tax evasion and promoting compliance. He mentioned that additional changes included tax incentives, particularly for the gas sector, as part of the government’s efforts to boost investment and growth. Adedeji pointed out that incentives, such as zero VAT on compressed natural gas and liquefied petroleum gas, are intended to boost the sector and diversify Nigeria’s energy mix He urged businesses and citizens to collaborate in advancing Nigeria’s tax system, maintaining that transparency and innovation were key to ensuring long-term success. He stressed the importance of tax education and raising public awareness to foster a culture of compliance. The President of the LCCI, Gabriel Idahosa, passionately urged for heightened collaboration between the private sector and the government to effectively tackle Nigeria’s pressing fiscal challenges. He emphasized that Nigeria’s tax-to-GDP ratio is alarmingly low at 10.86 percent, significantly below the African average of 15-20 percent. He stressed the urgent need for comprehensive reforms and robust collaboration between public and private stakeholders to elevate the ratio to 18 percent within the next three years. Idahosa commended FIRS’ efforts to enhance tax administration with technology, including the ‘TaxProMax platform’. He also praised the establishment of the Presidential Committee on Fiscal Policy and Tax Reforms, chaired by Taiwo Oyedele. At the event, Dr. Chinyere Almona, the Director General of LCCI and a member of the Presidential Committee on Fiscal Policy and Tax Reforms, passionately emphasized that the delayed implementation of the new withholding tax regime was solely due to the prolonged wait for legislative approval. ““The tax law is being revised, but it has to go through a process of approval. It’s difficult to have things come out piecemeal, as it won’t benefit anyone to have reforms that are not integrated,” Almona remarked. She urged industry players to be patient as the approval process was ongoing.
