Zacch Adedeji, the Acting Chairman of the Federal Inland Revenue Service (FIRS), has given assurance to corporate organizations that the FIRS’s commitment to raising the country’s tax-to-GDP ratio from 10.86% to 18% will not lead to higher taxes or the introduction of new taxes.
Adedeji stressed that the administration led by President Bola Tinubu aims to foster a favorable business environment. Under his leadership, the FIRS intends to achieve an eight percent increase in the tax-to-GDP ratio within the next three years, surpassing Africa’s average of 16.5%. This objective raised concerns among some corporate entities that it might result in higher tax rates or new taxes.
Speaking to representatives of major tax-paying companies in Lagos, Adedeji stated, “Our fundamental belief, understanding, and vision as a revenue-generating agency do not include introducing new taxes; instead, we aim to use data to enhance tax compliance.”
A statement from his Special Adviser on Media and Communication, Dare Adekanmbi, quoted the FIRS chairman as saying that invited companies and those willing to voluntarily fulfill their tax obligations have no reason to worry.
“Our plan is straightforward. We seek to increase tax revenue and tax prosperity, not poverty. Therefore, our objective is not to harm the sources of revenue. So, you have nothing to fear.
“We will not collect what is not rightfully owed to us. However, we do not want anyone to evade their tax obligations. Our intention is fair engagement. Rest assured that the 18% tax-to-GDP target will not lead to higher taxes.
“If you have been following Mr. Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, you would know that part of the committee’s mandate is to reduce the number of taxes,” he explained.
He emphasized that the purpose of engaging with these companies is to incorporate their insights into the strategic action plan being developed to address challenges in tax revenue collection.
Adedeji commended the invited companies for their responsible approach to taxation and urged them to continue fulfilling their tax obligations diligently.
“I must also applaud your commitment to upholding high tax compliance standards and responsible corporate citizenship, which distinguishes you as top taxpayers in Nigeria. This aligns perfectly with our vision of making taxation the cornerstone of national development through voluntary compliance. Your respective industries play a crucial role in generating substantial tax revenue for the government and in shaping the economic and fiscal stability of the nation.
“We are not oblivious to the challenges facing businesses in Nigeria due to ongoing reforms aimed at improving economic performance. These are difficult but necessary decisions we must make as a nation to realize our full potential,” he stated.
In response to concerns raised by company representatives, such as the issue of multiple taxes and duplicated tax oversight on corporate entities, the chairman promised to address these issues.
Companies attending the event included Nestlé Nigeria Plc, ExxonMobil, Shell, Guinness, Nigerian Breweries Plc, Flour Mills, Dangote Group, MTN, British American Tobacco company, First Bank, Access Bank, Guaranty Trust Bank, Zenith Bank Plc, KC Gaming Limited (Bet9ja), Airtel, Seplat, BUA Cement, Nigeria Liquified Natural Gas, NNPC Limited, and others.
The provided information is intended for general awareness and may not be entirely accurate or up-to-date. The post disclaims any warranties regarding the completeness, accuracy, or reliability of the content, services, or graphics on the website. It advises caution when using the information for any purpose.