…Deepens engagement with stakeholders on withholding tax reforms

By Luminous Jannamike

ABUJA – The Federal Inland Revenue Service (FIRS) has unveiled new reforms aimed at reducing administrative burdens for small and medium-scale enterprises (SMEs) as part of its ongoing efforts to modernise Nigeria’s tax system and promote voluntary compliance.

The 2024 Withholding Tax (WHT) Regulations, a cornerstone of FIRS’s reform agenda, seek to align domestic tax practices with global standards, enhance efficiency, and foster transparency, particularly for SMEs.

The reforms were highlighted at a stakeholder forum recently convened in Abuja, which brought together tax consultants, professional bodies, compliance experts, and other key players in Nigeria’s tax ecosystem.

The event provided a platform for dialogue on deduction obligations, exemptions, installment plans, and improved compliance protocols.

Collins Osagie Omokaro, Special Adviser on Communications and Advocacy to the FIRS Executive Chairman, Dr. Zacch Adedeji, emphasized the importance of collaboration in achieving effective tax administration.

“The Executive Chairman has made it clear that effective tax administration must be built on dialogue and understanding. These forums provide us with an opportunity to offer clarity, listen to feedback, and work collaboratively with taxpayers to improve outcomes. That is how we build trust and ensure long-term compliance,” Omokaro stated.

The 2024 WHT Regulations are designed to address longstanding challenges faced by SMEs, including cumbersome tax processes and a lack of clarity in compliance requirements. By streamlining these processes, FIRS aims to create a more inclusive and efficient tax regime that supports business growth and economic development.

Tax consultants at the forum welcomed the initiative, describing it as timely and crucial for bridging the gap between policy and practice. They noted that direct engagement with FIRS enhances clarity and enables practitioners to provide better advisory services to clients.

The event also featured the recognition of top-performing taxpayers who have demonstrated excellence in compliance and timely remittances. This move highlights FIRS’s commitment to transparency and civic responsibility, as well as its efforts to incentivize compliance among taxpayers.

As Nigeria moves toward a more modernized tax system, FIRS has pledged to sustain its engagement with professionals and stakeholders, promote taxpayer education, and uphold service excellence across the board. The Service’s leadership has reiterated its vision for a responsive and people-centered tax system that drives national development.

“These reforms are not just about improving tax collection; they are about creating an enabling environment for businesses to thrive and contribute to the growth of our economy,” Omokaro added.

The stakeholder forum marks a significant step in FIRS’s efforts to build trust, enhance compliance, and support Nigeria’s economic transformation through innovative tax policies.