A policy analyst, Arabinrin Aderonke, has offered insight into how the Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, is driving the tax reform of President Bola Ahmed Tinubu-led administration.
Aderonke, in a piece titled “Taxation: the Uncommon Ideology of the Tax Boss,” explained how the reform would create the enabling environment for economic growth in the country.
She explained that Adedeji’s resolve to unveil his vision for Nigeria’s tax system 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,” she noted.
“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 penalising 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,” she said.
The Technical Assistant, Broadcast Media, at the Federal Inland Revenue Service added: “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 tax collection are uncommon and different from what they used to be. It is pro-people and 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,” she concluded.
