The Federal Inland Revenue Service (FIRS) has assured that through the integration of technology, improved processes and capacity building, it is well positioned to meet its ambitious target of an 18 per cent tax-to-output ratio by 2026.

It also reassured Nigerians that its drive to shore up government revenue will not translate to an increase in taxes. Chairman of FIRS, Dr Zacch Adedeji, gave the assurance on Thursday at the opening of a three-day workshop on enhancing tax compliance and revenue generation organised for accountants-general of states, directors of finance of the Federal Capital Territory Administration (FCTA) and Federal Government owned enterprises in Abuja. He said the focus must be on blocking leakages and ensuring full compliance with the existing tax laws.

Nigeria has one of the lowest tax-to-gross domestic (GDP) in the world at approximately 10.8 per cent. Adedeji said as accountants-general, they served as vital agents of government, ensuring that taxes were 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,” he said.

The FIRS boss informed the accountants-generals that they are critical in the quest to mobilise revenue for the government.

“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,” he said.

He said the government has also made efforts to simplify the tax remittance process, particularly through the centralised payment system where accountants-general 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,” he said.