FIRS chairman reassures firms: No plans to increase taxes

FIRS chairman reassures firms: No plans to increase taxes
FIRS chairman reassures firms: No plans to increase taxes

Zacch Adedeji, the Acting Chairman of the Federal Inland Revenue Service (FIRS), has addressed concerns expressed by corporate organizations regarding FIRS’s goal to elevate Nigeria’s tax-to-GDP ratio from 10.86% to 18%.

Adedeji emphasized that this commitment does not automatically equate to increased taxes or the introduction of new taxes.

The Bola Tinubu-led administration aims to create a conducive environment for business growth.

Under Adedeji’s leadership, FIRS intends to achieve an eight percent boost in the tax-to-GDP ratio over the next three years, surpassing Africa’s average of 16.5%, all while supporting investment and economic growth.

This strategy had raised some muted concerns that it might result in higher tax rates or the introduction of new ones.

During a gathering with representatives of major tax-paying companies 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.”

He assured invited companies and those willing to fulfill their tax obligations voluntarily that they had no reason to be anxious, emphasizing their intention to boost tax revenue by taxing prosperity, not poverty.

Adedeji stressed, “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 percent tax-to-GDP target will not translate to an increase in taxes.”