The Federal Inland Revenue Service (FIRS) has said from September, there would be a law to take care of existing gaps in revenue collection, including providing a legal and regulatory framework for the operation of cryptocurrency.
Executive Chairman of the service, Dr. Zacch Adedeji, said the country can no longer run away from cryptocurrency, a form of digital currency exchange which is an alternative form of payment using encryption algorithm.
Amidst calls for the regulatory framework as the cryptocurrency business evolves, the FIRS boss said the service is working on latching unto that space to boost its revenue collection in its new law.
He spoke in Lagos during a stakeholders’ engagement with the Senate and House of Representatives Committees on Finance organised by the Intergovernmental Relations Department.
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The theme of the engagement was “Repositioning the FIRS to achieve its mandate.”
The Chairman also disclosed that the service is on track towards meeting the N19.4 trillion revenue target.
According to the Chairman, cryptocurrency has become a global payment system which Nigeria must embrace in a manner that would not be injurious to the economy of the country.
This is why he stated that the new law would be in place to capture crypto regulations and also address other gaps in the existing laws like the Stamp Duty which has become outdated.
He said, “The plan first is to have the law that regulates it and that is why we are here with the legislators which would be the base of charging as it’s done in other places in the world when you have this new innovation or system you just have to get ready for it. You can’t go away from it, you just have to plan to regulate it in such a way that it is not injurious to the economic development of Nigeria.”
He stated that for instance, the country is still using a Stamp Duty law of 1939 when there were no states or local governments.
“That is one reason why Mr. President set up the Tax and Fiscal Reform Committee to change and check all these laws. By God’s grace the new law will come by September and all those concerns will be addressed,” he added.
Adedeji in his opening remark stated that the engagement was to further get the buy-in of legislators as the service works to meet its N19.4 trillion revenue target for the year, saying, “We are on the path to meet that target.”
He commended the lawmakers for the passage of the recent windfall bill which which imposed 50% windfall tax on the banks’ foreign exchange revaluation gains.
He stated that the new windfall tax would increase the service’s ability to meet its revenue target, get more revenue and redistribute the wealth.
“Also what you have done to make sure that we have 50% from all what MDAs collected as revenue, the kind of innovation that you have brought has really helped the federal government,” he said.
The Chairman, Senate Committee on Finance, Senator Sani Musa stated that the FIRS must diligently execute its mandate to improve the financial health of the nation.
He noted that the service has made significant strides in enhancing the tax administration, adding that as the global economy evolves there is a pressing need to assess, reassess and reposition the tax system.
Musa stated that the service must foster accountability, transparency and innovation in revenue generation.
His counterpart in the House of Representative, James Faleke represented by Hon. Kalejaiye Paul, a member of the committee said through effective collaboration with relevant agencies the tax system can be enhanced.
“We will be there for you at all times, we will collaborate with you to move Nigeria forward,” he said.
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