The Lagos Chamber of Commerce and Industry (LCCI) has acknowledged the transformative strides taking place at the Federal Inland Revenue Service (FIRS), saying that the Revenue Agency has moved from being a tax collector to a service provider.
It also suggested five ways the Agency can create a unified tax system that will reduce redundancies and simplify tax compliance in Nigeria.
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 do this.
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.
“Investing in analytics and AI would enable FIRS to predict revenue patterns and enforce targeted compliance measures, further improving tax collection efficiency.
“Training FIRS’s workforce in global tax practices would ensure the agency remains agile in an evolving economic landscape.
“Fully digitalizing FIRS operations, as seen in Rwanda, would improve efficiency, reduce costs, and make tax processes more accessible.
“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.”
While commending the Executive Chairman of FIRS, Dr. Zaccheaus 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 alao 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.
Thanking FIRS for their support so far, 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.
“On behalf of the Trade Promotion Board, the council members, and the entire members of the Lagos Chamber of Commerce and Industry, I thank the FIRS for supporting the LITF by participating in and offering your services at this trade fair and especially for hosting this special day.”
Mr. Idahosa 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.
He said the generic 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.