NASS moves to consolidate revenue collection against corruption, duplication

October 22, 2023

NASS moves to consolidate revenue collection against corruption, duplication

By Egufe Yafugborhi

TO simplify Nigeria’s tax system, check duplication of efforts to stimulate ease of compliance with the law, the National Assembly (NASS) is considering a legislative action for consolidation of revenue collection into a single agency.

The Senate gave the indication in a communique issued over the three day Retreat for Senators of on Fiscal Policy and Tax Reform which ended Saturday at Ikot Ekpene, Akwa Ibom State.

Signed by the Chairman, Senate Committee on Media and Public Affairs Communique who also chaired the Sub-Committee of the Senate Retreat, Yemi Adaramodu, the communique noted that much tax policies, including Stamp Duty Act of 1939, shall be reviewed to conform with present realities in the country.

It captured the need to, “Enhance public spending efficiency, by tackling corruption in Government spending in order to provide commensurate fiscal exchange to citizens and boost tax morale.

“The situation where many agencies of government are involved in collecting taxes and new laws continue to make it the responsibility of these agencies to collect taxes should be halted through a legislative resolution.

“Bills on taxes should be presented as Executive Bills and not as private member Bills. There is a need to review the tax waiver policy to ensure it is aligned with the revenue mobilization drive of the government by making the waiver process more transparent and accountable.

“To address exchange rate management issues, challenges of inflation, address poverty, and create jobs, there is a need to consider and approve the Emergency Economic Intervention Bill from the Executive as a proposed legislation from the Presidential Committee on Fiscal Policy and Tax Reforms.

“Establish clear and transparent guidelines for revenue retention. The government should establish clear and transparent guidelines for the amount of revenue that revenue generating institutions are allowed to retain.

“These guidelines should be based on objective criteria, such as the institution’s verified operating costs and investment needs by the relevant authorities and committees of the National Assembly.”

It further captured, “Need for effective management of resources by adopting technology in expenditure management, driving adherence to fiscal rules and benchmarks, establishing a national fiscal risk framework for revenue, debt, and expenditure.

“Nigerian Government should consolidate revenue collection into a single agency like the FIRS. This would simplify the tax system, reduce duplication of efforts, and make it easier for taxpayers to comply with the law.

“Work with the Executive to review the National Development Plan to integrate the 8-point Agenda of the President and consider legislating aspects of the Agenda for holistic implementation.

“There is a need to consider relevant constitutional amendments to pave the way for a 5-year development plan to cater for projects and ensure continuity while limiting abandoned projects.

“Enforce consequences for violations of any provisions of the law regarding monetary and fiscal matters. This will require amendments to the relevant laws to ensure effective oversight and enforcement of the consequences, as the case may be.

“Enactment of an Emergency Economic Intervention Bill. This will address critical socio-economic issues concerning foreign exchange management, tackling inflation, stimulating economic growth, and creating more jobs.”