New FIRS Chief Aims for 18% Tax-To-GDP Ratio in 3 Years

The newly appointed Acting Chairman of the Federal Inland Revenue Service (FIRS), Zach Adedeji, said on Monday that it would work on generating an 18% tax-to-GDP ratio in the next three years.

He took over from Muhammad Nami, who was asked by President Bola Tinubu to go on a three-month pre-retirement leave ahead of his exit in December this year.

His speech, according to BusinessDay

• Our aspiration is audacious – to surpass Africa’s average tax-to-GDP ratio of 16.5% and achieve an impressive 18% within three years.

• By doing so, we aim to reduce our nation’s reliance on borrowing and ensure financial sustainability.

• As we chart our course ahead, FIRS is committed to placing innovation, technology, and fresh ideas at the forefront of our operations. This strategic focus will empower us to enhance efficiency, fortify against revenue leaks, and bolster coordination and accountability within our organization.

• Our overarching goal is to nurture voluntary tax compliance by establishing a modern, dependable tax system that gamers the trust and admiration of all stakeholders. Through this, we hope to Create an environment where taxpayers willingly fulfil their civic duties.

• We will implement a robust enforcement model that effectively defers tax evaders while maintaining fairness and transparency in our processes.

• A fundamental aspect of our mission is to elucidate to taxpayers why their civic duty matters. We are committed to simplifying our tax system, making it accessible and comprehensible, thereby facilitating voluntary tax payments and fostering a sense of civic responsibility.

• Quality data will be the cornerstone of our operations, enabling us to measure our progress, make informed decisions, and maintain the highest standards of accountability. We recognise that data-driven strategies are essential to our success.

• This stark reality necessitates swift and resolute action on our part. We cannot afford to delay; we must act decisively to reverse this concerning trend.

• In our pursuit of a brighter fiscal future, we are determined to align ourselves with President Bola Tinubu’s esteemed Fiscal Policy and Tax Reforms Committee. This collaboration will enable us to shape a prosperous fiscal landscape that empowers our nation’s growth and development.