Adedeji Forecloses Tax Increment Amid Renewed Revenue Drive
James Emejo in Abuja
The acting Chairman, Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, yesterday assured that the service’s renewed drive to raise the country’s tax-to-GDP ratio to about 18 per cent would not necessarily result in an increase in current taxes.
His assurances came against the backdrop of concerns expressed by corporate organisations following Adedeji’s recent determination to improve the tax ratio from the current 10.86 per cent to 18 per cent within three years.
The taxpayers believed such an aspiration might require an increase in taxes or even introduction of new ones in order to meet the proposed threshold.
However, the acting FIRS boss, while addressing representatives of top large tax-paying companies in Lagos, insisted that such resolve would not necessarily lead to an increase in taxes.
In a statement issued by his Special Adviser on Media and Communication, Mr. Dare Adekanmbi, he pointed out that the President Bola Tinubu-led administration was determined to create a wholesome environment for businesses to flourish.
The growing speculations over a potential tax increase had unsettled the corporate entity in particular which is uncomfortable with any increase or introduction of new taxes at the moment partly given the already difficult operating environment.
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” adding that the invited companies and those willing to voluntarily fulfil their tax obligations had nothing to fear.
He said, “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 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.”
According to him, the purpose of the engagement with the companies was to among other things factor their inputs into the strategic action plan being mapped out in order to address challenges hampering tax revenue collection.
He commended the companies for their high sense of responsibility, urging them to continue to discharge their tax obligation diligently.
Adedeji said, “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 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.”
Further addressing stakeholders’ concerns on the multiplicity of taxes and duplication of tax oversight on corporate entities, he promised to resolve the issues raised.
According to the statement, some of the companies at the engagement included Nestlé Nigeria Plc, ExxonMobil, Shell, Guinness, Nigerian Breweries Plc, Flour Mills, and Dangote Group.
Others were 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 among others.
