Tax Reform Bill: Consultants Excluded from Tax Collection

By Our Correspondent

The Presidential Committee on Tax and Fiscal Reform has clarified that the proposed Tax Reform Bill does not allow consultants to collect taxes on behalf of the government.

This clarification addresses concerns raised by various stakeholders, including Northern politicians and the Academic Staff Union of Universities (ASUU).

Critics had pointed to Section 69 of the bill, alleging it introduced tax collection by third parties.

However, the committee explained that the section permits the use of technology, such as payment platforms, to streamline tax processes.

This provision is not new, as it aligns with existing laws under the FIRS Establishment Act amended in 2021.

The bill explicitly prohibits engaging consultants for assessing or collecting taxes, ensuring these responsibilities remain with tax authorities.

While consultants can assist with professional tasks, they are barred from performing core tax functions.

To maintain accountability, the bill establishes a governance framework and requires periodic reporting of tax authority activities to the finance minister, who will present these reports to the Federal Executive Council and the National Assembly.

The reforms aim to modernize tax administration without compromising transparency or compliance.