FIRS Urges State Accountants-General to Enhance VAT and Withholding Tax Remittance
Strengthening Internally Generated Revenue Amid Economic Challenges
The Executive Chairman of the Federal Inland Revenue Service (FIRS), Mr. Zacch Adedeji, has called upon State Accountants-General to expedite the remittance of Value Added Tax (VAT) and Withholding Tax (WHT) as part of a strategic initiative to bolster Internally Generated Revenue (IGR) in Nigeria.
Economic Pressures Demand Urgent Action
During a recent two-day meeting in Abuja with FIRS officials and State Accountants-General, Adedeji highlighted the pressing need for revenue collectors to intensify their efforts in light of the nation’s economic challenges. He stated, “Our nation is currently facing economic difficulties, but it is essential for us to look inward and enhance our internally generated revenue. This does not imply increasing tax rates; rather, we must focus on eliminating leakages and ensuring strict adherence to existing tax laws.”
The Essential Role of Accountants-General
Emphasizing the crucial responsibilities of the Accountants-General, Adedeji remarked, “You are tasked with ensuring the proper charging and remittance of VAT, the payment of Stamp Duties on contracts, and the appropriate withholding and remittance of Withholding Tax (WHT) elements in contracts.”
Collaboration for National Prosperity
Mr. Adedeji underlined the significance of collaboration in achieving the collective goal of increasing revenue for the country’s prosperity. He pointed out that FIRS cannot fulfill its revenue targets without the effective partnership and support of state officials. “We are all agents of the same government, united by one vision: to enhance revenue for Nigeria’s growth and development, ultimately benefiting its citizens,” he said.
Best Practices in Tax Compliance
In his address, Adedeji highlighted the importance of fostering strong partnerships and support systems to improve tax compliance. He noted that countries and institutions that have successfully enhanced tax collection have done so by encouraging cooperation across all tax categories.
FIRS Sets Ambitious Tax-to-GDP Ratio Target
Looking ahead, Adedeji announced that FIRS is on track to achieve an 18% Tax-to-GDP ratio by 2026. This ambitious target will be driven by technological integration, process improvements, and ongoing capacity building for staff, positioning Nigeria for a more sustainable economic future.
This call to action reflects FIRS’s commitment to enhancing tax compliance and revenue generation, ensuring that Nigeria can navigate its economic challenges effectively.
