Acting chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, has assured corporate organisations that the resolve of FIRS to increase the country’s tax-to-GDP ratio to 18 per cent will not lead to increase in taxes.
Adedeji gave this assurance in a statement signed and released by his special adviser on media and communication, Dare Adekanmbi on Thursday, October 19, 2023.
According to Adedeji, the President Bola Tinubu-led administration is determined to create a wholesome environment for businesses to flourish hence the resolve FIRS would not impact corporate organisations negatively.
The FIRS chairman also noted that the agency under his leadership would in the next three years achieve an eight per cent raise in tax-to-GDP ratio to surpass Africa’s average of 16.5% without stifling investment or economic growth.
Adedeji therefore assured invited companies and those willing to voluntarily carry out their tax obligations have nothing to be afraid of.
The statement reads: “ 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 an 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
“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.
“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 the 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 said.
Meanwhile, companies present at 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.
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