The Federal Inland Revenue Service plans to raise Nigeria’s tax ratio to Gross Domestic Product ratio from the current six per cent to 17 per cent by 2023. This was confirmed by its Executive Chairman, Muhammed Nami at a recent event with Business owners in Lagos.
As reported by the PUNCH, a statement from the FIRS revealed that the primary objective of the meeting was to sensitize Lagos traders, and market unions on the 2019 Finance Act.
While explaining further, he said the new Finance Act will benefit business owners greatly as it includes a provision for reduction of the Company Income Tax from 30 per cent to 20 per cent.
The FIRS Chairman harped on the need for entrepreneurs to register their businesses officially in other to enjoy the many benefits as contained in the recent Finance Act passed into law.
He further urged the traders to separate their personal finances from their business capital in order not to lose their working capital to state tax bodies. By doing so, it would help their businesses to grow as they pay less tax.
The traders were further urged to endeavor to charge Value Added Tax on applicable goods and services, especially consumption, and remit it to the FIRS promptly.
In its quest to bring the tax office services closer to the people, the FIRS intends to open more offices in market places to as to ensure effective tax compliance and make the services easier for business owners. It also plans to reposition its Corporate Social Responsibility activities to benefit the informal sector, including markets, to create a conducive business environment for them.