FIRS Chairman Allays Fears On Increased Tax Rates

The acting chairman of the Federal Inland Revenue Service, Zacch Adedeji, has assured corporate organisations that there are no plans to increase tax rates following the resolution to increase the country’s tax-to-GDP ratio from 10.86 per cent to 18.

The plan had triggered muffled apprehensions among corporate entities that the decision could cause an increase in tax rates or the introduction of new ones.

Naija News reports that Adedeji, while addressing representatives of top large tax-paying companies during a get-together at Four Points by Sheraton in Lagos on Wednesday, said such resolve would not necessarily lead to an increase in taxes or the introduction of new taxes as President Bola Tinubu-led administration is determined to create a wholesome environment for businesses to flourish.

Adedeji said in the next three years, the FIRS would achieve an eight per cent rise in tax-to-GDP ratio to surpass Africa’s average of 16.5% without stifling investment or economic growth.

He 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.”

Also, in a statement by his Special Adviser on Media and Communication, Dare Adekanmbi, on Thursday, the FIRS chairman said the invited companies and those willing to carry out their tax obligations voluntarily have nothing to be afraid of.

According to him, the purpose of the engagement with the companies is to factor their inputs into the strategic action plan to address challenges hampering tax revenue collection.

He lauded the invited companies for their high sense of responsibility, urging them to discharge their tax obligation diligently.

He said, “Our plan is simple. We want to grow tax revenue, and we only want to tax prosperity and not poverty. 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.

“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 the economic and fiscal stability of the nation.

“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.

“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.”