The Lagos Chamber of Commerce and Industry (LCCI) has acknowledged the transformation taking place at the Federal Inland Revenue Service (FIRS), saying that the Revenue Agency strides has moved it from being a tax collector to a service provider.
Speaking during that FIRS Special Day at the ongoing Lagos International Trade Fair (LITF), themed “Connecting Businesses, Creating Value”, LCCI President, Mr Gabriel Idahosa, recommended five ways the Tax Agency can create a unified tax system and reduce tax redundances and simplify tax compliance in Nigeria.
According to him, “Targeted outreach, especially within the informal sector, could foster a culture of compliance. Collaborating with trade associations could help educate these segments effectively. Also identified as a facilitator of unified tax system is “Investing in analytics and AI would enable FIRS to predict revenue patterns and enforce targeted compliance measures, further improving tax collection efficiency.”
Upbeat in the list include, “Training FIRS’s workforce in global tax practices would ensure the agency remains agile in an evolving economic landscape. Next is “Fully digitalizing FIRS operations, as seen in Rwanda, would improve efficiency, reduce costs, and make tax processes more accessible. Finally, is “Greater cooperation with state tax agencies could create a unified tax system, reducing redundancies and simplifying tax compliance.”
While emphasizing the need for effective tax system, the LCCI President said: “…effective tax governance is an integral component of the ease of doing business concept. As we all know, businesses need the support and cooperation of key regulatory institutions like the Federal Inland Revenue Service (FIRS) to thrive and be competitive.”
Commending the Executive Chairman of FIRS, Dr. Zacchaeus Adedeji, and the executive management of FIRS for their commitment to institutional reforms, tax awareness, and leveraging technology to reposition FIRS for the delivery of quality services, he said FIRS has moved from being a tax collector to a service provider.
On behalf of LCCI, he urged FIRS to deploy more technology for its operations as this will make tax payment easier, more efficient and would lead to more tax compliance in the long run.
He also called on the FIRS to address the lingering issues in the tax system which include complication in tax computations, rigorous process in tax payment, multiplicity of taxes from multiple revenue collection agencies across the three tiers of government, inadequate knowledge and information about tax regulations especially on tax issues.
Mr Idahosa said “LCCI will continue to engage with the FIRS on the implementation of reform initiatives on all major tax administration issues towards creating a more conducive regulatory environment where businesses can thrive to generate more revenue and comply more with tax demands.
Mr. Idahosa while thanking FIRS for their participation said For the past 38 years, the LCCI has organized the LITF which has grown to become the largest trade exhibition event in West Africa in terms of traffic and volume of transactions recorded.
He said the trade fair has consistently offered opportunities for the promotion of trade, commerce, and investment through networking opportunities and mutual relations toward fostering the economic growth and development of Nigeria, stressing that the theme for the annual fair “Connecting Businesses, Creating Value,” underscored the importance of relationships and networking among businesses for wealth creation and trade partnerships, and also underlined the value of interactions between producers, service providers, and end-users.
