The acting chairman of the Federal Inland Revenue Service, Zacch Adedeji, has assured top corporate organisations that the agency’s goal of increasing the country’s tax-to-GDP ratio to 18 per cent from 10.86 will not result in higher taxes or new taxes.
He said the President Bola Tinubu-led administration is committed to creating a conducive environment for businesses to thrive.
Adedeji had earlier announced that the FIRS would aim to achieve an eight per cent rise in tax-to-GDP ratio in the next three years, surpassing Africa’s average of 16.5%, without affecting investment or economic growth. This had sparked some concerns among corporate entities that it could lead to higher tax rates or new taxes.
However, speaking at a meeting with representatives of large tax-paying companies at Four Points by Sheraton in Lagos on Wednesday, Adedeji said, “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.”
According to a statement by his Special Adviser on Media and Communication, Dare Adekanmbi, on Thursday, he quoted the FIRS chairman as saying that the invited companies and those willing to carry out their tax obligations voluntarily have nothing to be afraid of.
“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,” he said.
He said the purpose of the meeting was to seek input from the companies on how to address the challenges facing tax revenue collection.
He commended the companies for their high level of compliance and responsible corporate citizenship, which made them 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 the 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.
He also promised to address some of the issues raised by the representatives of the companies, such as the multiplicity of taxes and duplication of tax oversight on corporate entities.
Some of the companies 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.
