The Federal Inland Revenue Service’s acting chairman, Zacch Adedeji, has allayed concerns from corporate organizations that the FIRS’s intention to raise the country’s tax-to-GDP ratio from 10.86% to 18% will result in tax increases.
According to The Punch, Adedeji said in a statement that this decision would not necessarily result in tax increases or the introduction of new levies because the administration, led by President Bola Tinubu, was committed to fostering an environment where businesses could thrive.
The FIRS chairman stated that under his guidance, the agency would achieve an 8% increase in the tax-to-GDP ratio in the following three years, surpassing Africa’s average of 16.5% without restricting investment or economic growth.
There were murmured concerns that the decision would result in an increase in tax rates or the introduction of new ones.
Speaking to representatives of the top big tax-paying companies at a gathering on Wednesday in Lagos, Adedeji 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.”
The FIRS chairman was reported as adding that the invited businesses and those prepared to voluntarily comply with their tax duties had nothing to fear in a statement by his special adviser on media and communication, Dare Adekanmbi.
“Our plan is simple,” he stated. “To increase tax revenue, we only want to tax prosperity; we don’t want to tax poverty. Therefore, it is not in our best interests to cut down fruit-bearing trees. My first ‘love letter’ to you is a thank you for all you have done. Consequently, you have nothing to be afraid about.
“We won’t seek to recover what is not owed to us. However, we do not want anyone to underpay us. Our strategy is fair engagement. You can be confident that the objective of 18% tax as a percentage of GDP will not result in higher taxes.”
