Zacch Adedeji, the acting chairman of the Federal Inland Revenue Service, has reassured corporate entities, calming their apprehensions about the FIRS’s ambition to raise the nation’s tax-to-GDP ratio to 18 percent from 10.86, assuring them that it won’t lead to an immediate tax increase.
Adedeji clarified that such a resolution wouldn’t inevitably lead to a tax increase or the introduction of additional taxes, citing the Bola Tinubu-led administration’s dedication to nurturing a conducive business atmosphere.
The head of the FIRS outlined his vision for the agency to attain an 8% growth in the tax-to-GDP ratio within the upcoming three years, surpassing the 16.5% average in Africa, all while ensuring no hindrance to investment or economic progress.
The scheme had raised muted worries among corporate entities, as apprehensions grew regarding potential hikes in tax rates or the introduction of new taxation measures.
Addressing representatives of top large tax-paying companies during a get-together 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.’
In a statement issued by his Special Adviser on Media and Communication, Dare Adekanmbi, on Thursday, the FIRS chairman was cited as affirming that the summoned companies and those inclined to fulfill their tax duties voluntarily should not feel apprehensive.
‘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.’
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‘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.
According to his explanation, the purpose of the interaction with the companies is to incorporate their contributions into the strategic action plan currently being developed to overcome impediments in tax revenue collection.
He applauded the summoned companies for their exceptional sense of responsibility, urging them to persist in fulfilling their tax obligations with care and diligence.
‘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.’
‘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.
In response to particular concerns raised by company representatives, including the matter of multiple taxes and duplicate tax supervision on corporate entities, the chairman pledged to tackle the raised issues.
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.