The Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr Zach Adedeji is pleading with the accountant generals in the country for collaboration to enhance tax collections and remittances to the federation accounts.
Dr Adedeji made the plea at a workshop organized by FIRS for accountant generals and directors of finance on enhancing tax compliance and revenue generation at the Transcorp Hilton in Abuja on Thursday.
He said FIRS is tasked with the crucial responsibility of assessing, collecting, and accounting for revenue accruable to the federation, adding however that “we cannot achieve this mandate without your effective collaboration and support”.
Continuing, the Executive Chairman said “Whether by virtue of legal authority or through our direct engagement, you, as Accountant-Generals, serve as vital agents of government, ensuring that taxes are collected and remitted in a timely and efficient manner.
“We are all agents of the same government, united by one vision: to ramp up revenue for the growth and development of Nigeria and, by extension, for the benefit of its citizens. It is no longer news that our nation is facing economic challenges, but as a government, it is imperative that we look inward and increase our internally generated revenue.
“However, this does not necessarily mean increasing tax rates. Instead, we must focus on blocking leakages and ensuring full compliance with the existing tax laws, a task that I believe we can achieve together.
“Your role as Accountant Generals is critical in this regard. You are responsible for ensuring that VAT is charged and remitted, that Stamp Duties are paid on contracts, and that Withholding Tax (WHT) elements in contracts are properly withheld and remitted. These are not just tasks assigned to you by law, but responsibilities that are central to the success of our collective mandate.
“We trust that, whenever we call upon you, we can count on your continued support and cooperation. The government has also made efforts to simplify the tax remittance process, particularly through the centralized payment system where Accountant Generals handle payments on behalf of government agencies.
“This has been instrumental in ensuring swift remittance of taxes such as VAT, WHT, and Stamp Duties. We have also reduced the WHT rates to focus on taxing profits rather than revenue, a move that aims to ease the burden on businesses and citizens. While this may reduce the immediate tax collection, we believe that with enhanced compliance and collaboration, we can expand the tax base and make up the difference.
Dr Adedeji stressed that what FIRS has achieved through the integration of technology, improved processes, and capacity building for our people.
“These advancements have not only enhanced tax compliance but have also positioned us to meet our ambitious target of an 18% tax-to-GDP ratio by 2026. This collaboration, particularly with key stakeholders like yourselves, is critical to our success in achieving this goal.
“Let us use this workshop as an opportunity to reaffirm our commitment to these shared objectives. Personally, I believe by working together, we can create a more efficient, transparent, and effective tax administration system that supports the economic growth of our great nation”, he further noted.
