The acting chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, has reassured corporate organizations that the FIRS’ goal to increase Nigeria’s tax-to-GDP ratio to 18% from 10.86% will not necessarily lead to increased taxes or the introduction of new taxes. He emphasized the government’s commitment to create a conducive business environment to foster economic growth.
Adedeji mentioned that the FIRS aims to use data to improve tax compliance and grow tax revenue without introducing new taxes or stifling investment. He assured companies that have been paying taxes and those willing to meet their tax obligations voluntarily that they have nothing to fear.
He also noted that the 18% tax-to-GDP target would not translate into an increase in taxes and that the goal is to tax prosperity, not poverty. The FIRS plans to engage with the private sector to address challenges affecting tax revenue collection and factor their inputs into the strategic action plan.
Representatives of top large tax-paying companies attended the engagement event, and Adedeji commended their commitment to responsible corporate citizenship and high tax compliance standards. He pledged to address concerns related to the multiplicity of taxes and duplication of tax oversight on corporate entities.
The FIRS’ efforts to increase the tax-to-GDP ratio are part of a broader strategy to bolster tax collection and revenue generation in Nigeria.