The executive chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, has disclosed the Federal Government’s intentions to enact a new law aimed at transforming the revenue administration framework in Nigeria by the forthcoming month.
Naturenex reports that Adedeji revealed this development in his address at the 2024 stakeholders’ engagement, a forum organized by the Intergovernmental Relations Department of the FIRS, under the auspices of the Senate and House Committees on Finance, with the theme “Repositioning The FIRS To Achieve Its Mandate”.
Speaking at the event, the FIRS boss expressed dissatisfaction regarding the absence of a legal framework governing the digital market, particularly in the realm of cryptocurrency within Nigeria.
Adedeji elaborated on the government’s strategy to regulate cryptocurrency in a manner that would not hinder the country’s economic growth, emphasizing the objectives of revenue harmonization, simplification, and modernization of the tax laws currently in place.
He highlighted the irony of Nigeria’s continued reliance on the Stamp Duty Act of 1939 in the absence of internet connectivity, attributing this to the rationale behind President Bola Tinubu‘s establishment of the tax and fiscal reform committee to review and amend the existing laws.
Adedeji said: “We are on the path of making sure the target of N19.4 trillion target we were given is achieved. We commend the recent windfall levy passed to increase FIRS’ ability to meet targets and get more revenue and redistribute the wealth.
“By September, we are bringing the law that would overhaul all the process of revenue administration in Nigeria, harmonising the revenue, recording and simplifying the tax law that we have. For instance, the Stamp Duty Act of 1939, when there was no internet or connection, is what is still in use.
“Today, we cannot run away from cryptocurrency, but as we stand currently, there is no law anywhere in Nigeria that regulates cryptocurrency, and it is a new thing that is happening, and we cannot run away from it.
“The law we are using today is the 1939 law. At that time, there was no state or local government. That is the reason the President set up the tax and fiscal reform committee to check and change all these laws.’’
Furthermore, during the discussion, the Chairman of the Senate Committee on Finance, Senator Mohammed Musa, expressed that the Federal Inland Revenue Service (FIRS) and the legislative bodies are collaborating to develop legislation aimed at maximizing revenue collection to effectively tackle the myriad challenges confronting Nigeria, including infrastructure development and the enhancement of human capital.
Musa said: “When you are talking of revenue, in every clime, you need the right legislation, and there cannot be right legislation until there is a synergy between the agency collecting this revenue and the people making these laws.
‘’We, the Senate and the House of Representatives, work with the FIRS to give this country the proper legislation for tax collection.
“Those laws are so old that they have been before the independence of this country; they would be modified. I am sure by the time we resume from our recess; the executive will submit the executive bill for us to amend the Act, repeal it and re-enact the one that would go with the current system in the environment.
“Cryptocurrency has become the largest way to make money today, and in Nigeria, we do not have a law to guide them. The FIRS and the legislators are synergising to come up with legislation that would give Nigeria the best in getting revenue to address all the changes that we have, both in infrastructure and human capital development.
“As soon as we resume, we will work on it, and we expect the cooperation of Nigerians, corporate Nigerians and individuals. This is a country of over 250 million people, and less than 15 per cent are paying tax.
“This engagement is both timely and crucial as we continue our collective efforts to strengthen Nigerians’ physical framework.
“The collaboration between the Senate and the House committees on finance underscores the importance of a unified approach in addressing the challenges and opportunities before us.
“The FIRS, as the bedrock of our revenue generation, has a mandate that is vital to the financial health and sustainability of our nation.”
“Ensuring that the agency is not only effective but also agile in responding to the dynamic demands of our economy is a responsibility that we all share.
“As the global economy evolves and as our own economic landscape undergoes transformation, there is a pressing need to assess, to reassess, realign and reposition to meet these new realities.
“This means not only adopting best practices but also fostering an environment where transparency, accountability and innovation are at the forefront of revenue generation efforts,” the lawmaker added.
In his separate remark, the Chairman of the House Committee on Finance, James Faleke, said everybody wants improvement and development in the nation but noted that nobody wants to contribute to that purse.
“We are much more interested in sharing; nobody wants to contribute, forgetting that the developed world we always make reference to are developed, based on the resources that every citizen put into the box,” Faleke said.
