Taxation has been a longstanding source of revenue for governments across the world, which is usually a certain statutory obligation imposed on trades and transactions. As such, tax could be derived from gains of trade as we have crypto tax or from making certain transactions, which comes as value-added tax (VAT). So, as a country like Nigeria gravitates towards providing robust and inclusive ways to encourage taxpayers to pay taxes conveniently, the FIRS introduced USSD for tax information retrieval. So, let’s explore what this is all about.
Overview Of FIRS USSD Code For Information Retrieval
The Federal Inland Revenue Service (FIRS) launched an Unstructured Supplementary Service Data (USSD) code during the tax collection agency’s Customer Service Week, with the theme “Above and Beyond.” The code (*829#) introduced by FIRS Chairman Zaccheus Adedeji would make Nigeria the sixth African country to use a USSD code for tax collection and other related matters.
According to Adedeji, the instant messaging protocol demonstrates the further commitment of the agency to simplify tax and ensure that “every taxpayer, whether in bustling cities or remote areas, can engage with FIRS seamlessly.”
“Without the need for internet access, all of these services are now available with a simple mobile phone. This technological leap reflects our dedication to creating a tax system that is efficient, transparent, and responsive to the needs of taxpayers,” he added.
Therefore, the key benefits of the FIRS USSD code are to:
- Retrieve the Taxpayers Identification Number (TIN).
- Verify Tax Clearance Certificate (TCC).
- Access information on tax types and rates.
- Locate the nearest FIRS offices.
- Get answers to general tax-related inquiries.
Significance Of The FIRS USSD Code
The launch of the FIRS code is coming with the projection of setting the benchmark of 18% tax to GDP (Gross Domestic Product) by 2026. This comes as the Federal Government plans to increase the VAT from 7.5% to 10% and 15% by the end of 2027.
Therefore, the FIRS USSD code is expected to encourage taxpayers to stay committed to paying their taxes. This is because they can easily access their tax information to track their previous payments and extract details, promoting transparency, accountability, and inclusiveness.
It is a popular opinion that people show more interest in responding to their obligations when they are sure that their commitment is not going to be a waste. This is the same with paying taxes, as many taxpayers, over the years, felt discouraged from fulfilling their tax obligations because they could not track their tax payments or lost their tax identification number.
FIRS Proposes To Regulate Crypto Tax Earnings
In its bid to meet the 18% tax to GDP target by 2026. the FIRS has introduced an Executive Bill to the Nigerian National Assembly to overhaul the revenue system in the country as well as regulate the crypto sector.
According to the FIRS boss, “Cryptocurrency is an integral part of today’s economy, yet Nigeria lacks a legal framework for its operations. We need to introduce regulations that support economic growth while protecting our financial system.”
In light of this, the FIRS considers the imposition of tax on crypto earnings, just as there is crypto tax in Australia and Canada, which would increase the revenue generation in the country. It should be noted that Nigeria is a global leader in crypto adoption, driven by innovative use cases to combat economic challenges.
Nigeria is ranked second overall on Chainalysis’ Global Adoption Index as the country received approximately $59 billion in crypto value between July 2023 and June 2024. This staggering value puts Nigeria on the pedestal of global crypto recognition.
Therefore, FIRS could have seen great potential in the Nigerian crypto landscape to tap into to increase its tax record significantly and, in return, the revenue for the country.
Frequently Asked Questions (FAQs) About FIRS Introducing USSD For Tax Information Retrieval
What Can I Use The FIRS USSD Code For?
You can use the FIRS USSD to access information on tax types and rates, verify tax clearance certificate, locate nearest FIRS offices, retrieve taxpayer identification number (TIN), etc.
Can I Pay My Tax With The FIRS USSD Code?
No, you can not pay your taxes using the FIRS code. The code is for you to access various tax information without going to the FIRS office or its online portal.
Can I Use The FIRS Code On Any Mobile Telecommunication Network?
Yes, you can use the FIRS USSD code on any mobile network in Nigeria, including MTN, Glo, Airtel, and 9mobile. So it is a general code for all taxpayers in the country.
Conclusion
FIRS continues to simplify tax collection and tracking in Nigeria, which is seen as a welcome step to make the taxation structure robust in the country. Therefore, you can access your tax information and other related details offline without the need to go to the FIRS or its online portal
