The Federal Inland Revenue Service said the enforcement of tax through relevant laws will reduce the Federal Government’s reliance on borrowing.
This was made known by the FIRS boss, Zacch Adedeji, during his address at the Commerce and Industry Correspondents Association of Nigeria Annual Workshop/Awards themed: “Effects of Federal Tax Reform on Economy”.
He also disclosed the FG’s plan to raise the tax of Gross Domestic Product ratio to 18 per cent by the year 2026.
Represented by the Director/Coordinator, FIRS, Lagos Island, Mrs. Fadekemi Oyeniyi, the FIRS boss reiterated that taxation is the lifeblood of any economy.
He expressed optimism that taxation will provide the necessary funding for the government at any level to carry out its duties and carry out policies that will help the country grow and develop.
“This would allay the fears in some quarters that the targeted revenue may engender the imposition of additional or new taxes,” the FIRS boss said.
He added that “It is therefore imperative that our tax policy reforms are effective, fair, and encourage investment and innovation.
“Over the years, Nigeria has recognized the need for tax policy reforms to address the challenges faced by businesses and create an enabling environment for economic growth.”
Adedeji added that the agency is fully committed to empowering Nigeria’s growth and development, according to the Guardian.
“Our aspiration is audacious and that is 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,” he said after assuming office.
