The acting Chairman of Federal Inland Revenue Service (FIRS), Zacch Adedeji, has assured Nigerians and corporate organisations that the Service will not further increase taxes despite its target to raise the country’s tax-to-GDP ratio to 18 per cent from 10.86 per cent.
Adedeji said the target would not necessarily lead to increase in taxes or introduction of new taxes, assuring the President Bola Tinubu-led administration is determined to create a wholesome environment for businesses to flourish.
The FIRS chief, however, said the agency under his leadership would, in the next three years, achieve an eight per cent rise in tax-to-GDP ratio to surpass Africa’s average of 16.5 per cent without stifling investment or economic growth.
The plan has triggered muffled apprehensions among entities corporate that the decision could cause an increase in tax rates or introduction of new ones.
Addressing representatives of top large tax-paying companies during a get-together, 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.”
A statement by his Special Adviser on Media and Communication, Dare Adekanmbi, quoted the FIRS chairman as saying that the invited companies and those willing to voluntarily carry out their tax obligations 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 per cent tax-to-GDP target will not translate to increase in taxes,” he said.