Zacch Adedeji, the acting chairman of the Federal Inland Revenue Service (FIRS), has allayed corporate organizations’ concerns that higher taxes would result from FIRS’s determination to raise the nation’s tax-to-GDP ratio from 10.86 to 18%.
Adedeji stated that since the administration of President Bola Tinubu is committed to fostering an atmosphere that is conducive to economic growth, such resolution would not inevitably result in tax increases or the introduction of additional levies.
The chairman of FIRS had promised that the organization will surpass Africa’s average tax-to-GDP ratio of 16.5% in three years under his direction, all without impeding investment or economic progress.
Corporate groups had quietly been concerned that the strategy might result in higher tax rates or the introduction of new ones.
During a gathering at Four Points by Sheraton in Lagos, Adedeji addressed representatives of leading, sizable tax-paying corporations and stated, “Our belief, understanding, and vision as a revenue-generating agency is not to introduce any new tax as we only want to use data to improve compliance.”
In an announcement from his Special Advisor on Media and Communication, Dare Adekanmbi, the chairman of FIRS stated that there is nothing to fear for the companies that have been invited and those who are prepared to voluntarily fulfill their tax duties.
“We have an easy strategy. Our goal is to increase tax collection while just levying taxes on prosperity—not poverty. Thus, it serves no use for us to cut down the trees that produce the fruits. I want to thank you for everything that you have done in this first “love letter.” Thus, you have nothing to be concerned about.
“We won’t pursue collection of unpaid debts. However, we don’t want anyone to avoid paying us what is owed. Our strategy is fair engagement. You may be sure that higher taxes would not result from the 18% tax-to-GDP target.
“You would have known that lowering the number of taxes is a part of the committee’s mandate if you have been listening to Taiwo Oyedele, the chairman of the Presidential Committee on Fiscal Policy and Tax Reforms,” he remarked.
He claims that the goal of the engagement with the businesses is to incorporate their suggestions into the strategic action plan being developed to solve issues impeding the collection of tax revenue.
He praised the invited enterprises for their strong sense of accountability and exhorted them to keep up their conscientious tax payment.
As one of Nigeria’s top taxpayers, you stand out for your dedication to maintaining strict tax compliance guidelines and good corporate citizenship.
This is exactly in line with our goal of using voluntary compliance to make taxes the focal point of national development. Your individual industries are vital to the nation’s economic and fiscal stability, as well as to the government’s capacity to collect large amounts of tax income.
“We are cognizant of the difficulties that Nigerian businesses face in light of the ongoing reforms aimed at enhancing economic performance. In order for our country to reach its greatest potential, we must make these difficult but essential decisions, he stated.
