Abdulwahab Isa 
The acting Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, has promised corporate organisations that the move to increase the tax- to-GDP ratio to 18 per cent from 10.86 per cent will not lead to increase in taxes. According to him, the move will not necessarily lead to tax increases or introduction. He said the government is determined to create a wholesome environment for businesses to flourish.
Adedeji had said the agency would in the next three years achieve an eight per cent raise in tax- to-GDP ratio to surpass Africa’s average of 16.5 per cent without stifling investments or economic growth. The plan had triggered apprehensions of tax increases in the corporate sector.
Addressing representatives of top large tax- paying companies during a get-together in Lagos, the chairman 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.”
A statement by his Special Adviser on Media and Communication, Dare Adekanmbi, quoted Adedeji as saying the invited companies and those willing to voluntarily carry out their tax obligations had nothing to be afraid of. 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 increase in taxes. “If you have been listening to Mr Taiwo Oyedele, the Presidential Committee on Fiscal Policy and Tax Reforms Chairman, 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. He lauded the invited companies for their high sense of responsibility, urging them to continue to discharge their tax obligation diligently. The chairman promised to address the issues raised by the companies.
