The Nigerian Federal Inland Revenue Service (FIRS) plans to introduce a new regulatory bill to enhance tax collection in the country, including directives affecting the crypto space. This is according to a local news report.
If approved and signed into law, the proposed legislation will take effect as early as September. Dr Zacch Adedeji, Chairman of FIRS, remarked:
While we cannot avoid cryptocurrency as there is no law in Nigeria presently regulating it, there is a need for a law that regulates this line of transaction.
Dr Zacch Adedeji
He added that when new systems are introduced, it’s crucial to plan for regulation to prevent any harm to economic development, noting that this approach is common in other countries of the world.
FIRS Chairman’s tables vision for crypto regulation
During a stakeholders’ engagement with a joint National Assembly on Finance Committee in Lagos, FIRS boss Zacch Adedeji announced plans to draft and implement a new bill.
He said the bill aims to simplify tax laws, allowing for cohesive and seamless tax collection while eliminating outdated tax frameworks.
He emphasized that the bill would help modernize the current tax system and terminate laws like the Stamp Duty Act, which has been criticized for some time for the penalties it imposes on certain offenses and costly transactions.
Stakeholders react to FIRS’ statement on regulatory necessity
Chairman Senator Sani Musa of the Senate Committee on Finance supported FIRS’ decision and leadership. He pointed out the extreme importance of a single revenue collection organization for efficiency. He also showed eagerness for his committee to support FIRS in meeting its collection target and thought regulating the cryptocurrency industry would be vital in generating overall revenue.
He also agreed that the proposed legislation mentioned would allow for the modification of tax laws that have been in place since before Nigeria’s independence.
The House of Representatives Committee on Finance, represented by Hon. Kalejaiye Paul, also commended FIRS for its leadership and commitment to supporting the agency in its efforts to drive national development.
