Dr. Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), recently unveiled his vision for Nigeria’s tax system. His speech reveals a fresh, supportive vision for how taxes can drive economic success rather than hinder it. This showcased a move from traditional tax practices, aiming to create a more supportive environment for business growth and economic prosperity.
The Tax Boss tackled the pressing issue of over-taxation and redundant tax policies, which he identified as signs of systemic flaws. Citing President Bola Tinubu’s directive, he emphasized the need to focus on taxing the “fruits” of economic success such as profits and wealth rather than penalizing investments or targeting those less economically fortunate. This approach is designed to promote an environment where businesses in Nigeria can flourish without the burden of heavy taxes.
Rather than viewing taxation as a mechanism for imposing burdens, Dr. Adedeji sees his role as not just a tax enforcer but as a partner in business success. His vision is to be part of the journey as businesses grow. He finds joy in seeing manufacturers and other businesses thrive. His philosophy is that when businesses succeed, everyone benefits, including the FIRS and the nation as a whole.
To illustrate, Dr. Adedeji described a model where a business’s growth progresses. The concept is that as businesses thrive, the tax system benefits proportionately. For instance, if a business achieves a success level of 10, the tax contribution might be 3; at a level of 20, it would be 6; and at 30, it would be 18. This model ensures that taxes are in harmony with business growth, aligning the FIRS’s objectives with the prosperity of businesses.
The FIRS, under the Tax Boss’s leadership, is embracing a role as a growth partner. The goal is not just to collect revenue but to drive economic expansion across all sectors. By focusing on equitable and growth-oriented tax policies, the FIRS aims to support businesses and, by extension, boost national prosperity.
This move signifies a change in how the FIRS interacts with businesses and underscores a broader commitment to fostering a thriving economic environment in Nigeria.
His ideas of raising and collection of taxes are uncommon and totally different from what it used to be. It is pro people and clearly positive to the economy. The dynamic thinking of the tax boss is certainly helpful at this moment when our country’s economy requires absolute stimulation.
In essence, Dr. Adedeji’s vision for the FIRS promises to reshape the tax system in Nigeria, creating a framework where growth and prosperity go hand in hand.
“Arabinrin Aderonke is an Award-Winning investigative journalist, policy analyst, 2016 finalist, CNN African Journalism Award. She currently serves as Technical Assistant, Broadcast Media, at the Federal Inland Revenue Service”
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