The Acting Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, has allayed business owners’ fears about the moves by the federal revenue agency to increase the country’s tax-to-GDP ratio to 18% from 10.86%, saying attaining the target will not necessarily involving raising tax rates.
Adedeji, who restated the President Bola Tinubu-led administration’s determination to improve the environment for businesses to thrive, assured business owners and other stakeholders that the Service would, within the next three years, raise the nation’s tax-to-GDP ratio by at least eight percent to surpass Africa’s average of 16.5% without stifling investment or economic growth.
Addressing representatives of top large tax-paying companies during a get-together held in Lagos on Wednesday, Adedeji said the FIRS management’s 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 a statement issued by his Special Adviser on Media and Communication, Dare Adekanmbi, the FIRS chairman was quoted as saying that the invited companies and those willing to voluntarily carry out their tax obligations have nothing to be afraid of.
The FIRS’ boss said: “Our plan is simple. We want to grow tax revenue and we only want to tax prosperity and not poverty. Therefore, it is not in our interest to kill the trees that bear the fruits. My first ‘love letter’ to you is to appreciate what you have done. So, you don’t have anything to be afraid of.
“We will not collect what is not due to us. But we don’t want anyone not to pay what is due to us. Fair engagement is our plan. Rest assured that the 18% tax-to-GDP target will not translate to increase in taxes.
“If you have been listening to Mr Taiwo Oyedele who is the chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, you will have known that part of the mandate of the committee is to reduce the number of taxes”, Adedeji added.
According to him, the purpose of the engagement with the companies is to factor their inputs into the strategic action plan being mapped out in order to address challenges hampering tax revenue collection.
He lauded the invited companies’ CEOs for their high sense of responsibility and urged them to continue to discharge their tax obligation diligently.
The tax expert further expatiated: “I must also commend your commitment to upholding high tax compliance standards and responsible corporate citizenship, which sets you apart as the top taxpayers in Nigeria.
“This aligns perfectly with our vision of making taxation the pivot of national development through voluntary compliance. Your respective industries play a pivotal role in generating substantial tax revenue for government and in shaping economic and fiscal stability of the nation.
“We are not unmindful of the challenges facing businesses in Nigeria with the ongoing reforms to improve economic performance. These are painful but necessary choices we must make as a nation to attain our full potential,” he added
While responding to some of the concerns raised by representatives of the companies such as multiplicity of taxes, duplication of tax oversight on corporate entities, Adedeji promised to address the issues raised.
Some of the companies at the forum include Nestlé Nigeria Plc, ExxonMobil, Shell, Guinness, Nigerian Breweries Plc, Flour Mills, Dangote Group, MTN, British American Tobacco Company, First Bank, Access Bank, and Guaranty Trust Bank (GTB).
Others are Zenith Bank Plc, KC Gaming Limited (Bet9ja), Airtel, Seplat, BUA Cement, Nigeria Liquefied Natural Gas(NLNG), and the Nigerian National Petroleum Company Limited (NNPCL), among others.
