… Service says new tax system is better
As the saying goes, the proof of the pudding is in the eating.We can only judge if something is good, works, or is true after it has been tried or measurable and visible results have been achieved.
Talk and promises are fine and cheap but the real test is in the outcome.
In view of the promises made by NRS as it concerns itd new tax reforms and what it stands to achieve, the Finance and Business Online Publishers (FiBOP) at the weekend looked at the NRS’s numbers and how far it has worked in accordance with its mandate.
Six months after its repositioning, the NRS says its new focus on automation, transparency, and taxpayer service is already yielding tangible results in modernising tax administration in Nigeria.
Recall that the Service was mandated by the Federal Government to fix long-standing challenges including leakages, low compliance, multiple taxation, and inefficient manual processes.
The 6-month scorecard shows steady progress across revenue, technology, and taxpayer experience.
It was discovered that the NRS has actually widened the tax net using data from banks, Corporate Affairs Commission (CAC), and Customs, resulting in about 23 per cent increase in registered taxpayers.
The reform has also brought about reduction in revenue leakages in priority sectors.
More specifically, its Digital Transformation shows that with its latest software REV 360, which provides a 360-degree interface for registration, filing, payment, verification and dispute resolution — functions that once required separate offices, files and the associated bottlenecks have been mitigated significantly. This next generation revenue administration platform designed to modernise the nation’s Tax ecosystem aims at simplifying tax payers needs.
Nicknamed “Tax Administration 3.0”, the new platform has provided an advanced, intelligent, and integrated system to meet growing demands of taxpayers and the broader economy. REV 360 is part of a larger federal government’s effort to simplify the Nigerian tax system, boost compliance, and increase national revenue.
Also, with REV 360, NRS can beat its chest that it has leveraged technology to further its mandate. Rev 360 represents a major evolution from previous digital efforts. While the earlier TaxPro Max platform enabled electronic filing and reduced the need for physical interactions, Rev360 is primed for deeper integration. An initiative which features end-to-end automation and real-time reporting and Tax processes embedded directly into taxpayers existing operational systems.
“This shift enables faster processing, improved decision-making,
enhanced compliance, and a more seamless user experience ,” the NRS management explained, arguing that it aligns with global best practices and the service’s technological advancement strategy.
In fact, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele attested to the above facts while speaking at the14th Annual CEOs Forum of BusinessDay recently.
Oyedele disclosed that the tax reforms carried out by the Federal Government was encouraging the informal sector; leading to over 10,000 daily business registration with the CAC Abuja.
Quoting the CAC, as saying that they did what the Federal government did, months ago, (before the reforms), Oyedele said that “they have an average of 10,000 informal businesses applying to register with the CAC every single day”
He averred that the reforms were deliberately designed for the informal sector to share the prosperity of the nation.
Oyedele said that the Federal Government intentionally has laid the easier process to encourage and formalise businesses .
He expressed satisfaction that the reform was not a failure, but rather exceeded expectations and has been very impressive , seeing its impacts on the economy.
His words, “Our revenue mobilisation agenda is not about raising tax rates to punish success. No no . It is about widening the tax net, simplifying compliance and leveraging technology. Our landmark reforms are designed to eliminate multiple taxation and drastically reduce compliance cost.”
Furthermore, he stressed the import of leveraging on reforms to assist businesses to get formalised, having lawfully been exempted from taxes
The NRS introduction of an end-to-end e-filing and payment portal with its launch of Rev 360 Integrated systems across MDAs, the NRS says about 68 per cent of filings are now done online.
Noticeably, it has cut the average processing time from 7 days to 48 hours.
Taxpayer Service
The service has opened 12 new taxpayer service centers,rolled out SME education clinics nationwide and assisted 400,000+ taxpayers.
It has also reduced Complaint resolution time down by 40 per cent.
Integrity & Efficiency
With its Staff retraining and whistleblower portal as well as zero tolerance policy, NRS has recorded 92 percent drop in reported cases of harassment/extortion at tax offices
Collaboration
NRS has also signed data-sharing Memorandum of Understanding (MOUs) with 20 State IRS and key federal agencies for smoother joint audits and has
reduced cases of multiple taxation for businesses.
Speaking on the results, NRS leadership said, ” the goal was never to increase tax rates, but to make the system fairer and easier.
“Nigerians deserve a tax system they can trust,” the Service stated. “In 6 months, we have moved from promises to performance. Automation is cutting out bottlenecks. Data is helping us to be more equitable. And our people are being treated with dignity.”
The Service acknowledged that challenges remain, especially in the informal sector and in public perception.
However, It has reassured citizens that the next 6 months will focus on deeper SME support, faster refunds, and more transparency in how revenues are utilised.
“A stronger, more efficient revenue system means better funding for roads, schools, hospitals, and security That is the commitment we are keeping,” NR$ said in a statement.
Speaking on a similar note, Oyedele said the government’s focus is to ensure that businesses formalise, grow and contribute to shared prosperity, adding that the country must move from stability to investment, productivity, job creation and rising real incomes.
According to him, “Nigeria has completed the grueling foundational work of restoring macroeconomic stability. Our shared responsibility now is to convert that stability into investment, convert investment into productivity, convert productivity into jobs, and jobs into rising real incomes for every Nigerian.”
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