FIRS mulls 18% tax to GDP ratio by 2026

The Federal Inland Revenue Service (FIRS) says it aimed at increasing the country’s tax Gross Domestic Product ratio by 7.14 per cent from 10.86 per cent, the current figure, to 18 per cent by 2026.

Zacch Adedeji stated this on Monday while taking over the agency’s leadership from his predecessor, Muhammad Nami.

He said he will align with the presidential Fiscal Policy and Tax Reforms committee to achieve this feat.

He noted that with the country spending over 96 per cent of its revenue on debt servicing, it needs to shut up the tax drive.

He said: “Our aspiration is audacious – to surpass Africa’s average tax-to-GDP ratio of 16.5 per cent and achieve an impressive 18 per cent within three years. By doing so, we aim to reduce our nation’s reliance on borrowing and ensure financial sustainability.”

On Thursday last week, President Bola Ahmed Tinubu appointed Adedeji as the chairman of FIRS.