- FIRS moves to assure businesses
BY COBHAM NSA – With businesses and corporate institutions groaning under the weight of an unfriendly operating environment, the Federal Inland Revenue Service (FIRS) says there is no cause for alarm as current efforts at increasing Nigeria’s tax-to-GDP ratio to 18 percent from 10.86 will not snowball into an increase in taxes.
The Service said contrary to speculations in some quarters, commitment to improving the government’s revenue profile does not necessarily translate into a hike in taxes or the introduction of new taxes.
FIRS’ Acting Chairman, Zacch Adedeji, who allayed fears expressed by corporate organisations, said the President Bola Tinubu-led administration is fully focused on creating a wholesome environment for businesses to flourish in the country.
Addressing representatives of top large tax-paying companies during a get-together at Four Points by Sheraton in Lagos, 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.”
The FIRS Chairman, who assured the invited companies and those willing to voluntarily carry out their tax obligations that they have nothing to be afraid of, 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% tax-to-GDP target will not translate to an increase in taxes.”
A statement by his Special Adviser on Media and Communication, Dare Adekanmbi, further quoted the FIRS boss as saying; “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 is to factor their inputs into the strategic action plan being mapped out in order to address challenges hampering tax revenue collection.
Further applauding the invited companies for their high sense of responsibility, Adedeji charged them to continue discharging their tax obligation diligently, adding; “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”.
On concerns by the companies’ representatives about the multiplicity of taxes as well as duplication of tax oversight on corporate entities, Adedeji promised to address the issues raised for effective service delivery in the nation’s tax sector.
Apprehension had heightened among corporate entities over possible hike in taxes following Adedeji’s statement that under his watch, the Service would, within the next three years, achieve an eight percent raise in tax-to-GDP ratio to surpass Africa’s average of 16.5 percent without stifling investment or economic growth.
The companies that attended the event include Nestlé Nigeria Plc, ExxonMobil, Shell, Guinness, Nigerian Breweries Plc, Flour Mills, Dangote Group, MTN, and British American Tobacco Company (BATC).
Also in attendance were First Bank, Access Bank, Guaranty Trust Bank, Zenith Bank Plc, KC Gaming Limited (Bet9ja), Airtel, Seplat, BUA Cement, Nigeria Liquified Natural Gas, and NNPC Limited among others.
