The Federal Government of Nigeria has unveiled its plan to expand the country’s tax to Gross Domestic Product (GDP) ratio to 17% from 6% come 2023.
Muhammad Nami, the Federal Inland Revenue Service (FIRS) chief, made the declaration Wednesday during his address to about 100 representatives of traders’ associations and unions in Lagos.
The tax sensitisation forum was aimed at enlightening traders and market unions on the imperatives of the 2019 Finance Act.
Mr Nami identified the cut in Company Income Tax from 30 per cent to 20 among other advantages of the new fiscal regime.
The FIRS boss mentioned that traders that registered their businesses stood the chance of enjoying the offerings of the Finance Act.
He enjoined business owners to separate their taxable and personal money from each other in a bid to avert losing their working finances to fiscal authorities.
This he said would stimulate growth and help business prevent unnecessary taxation.
Nami reiterated the need for traders to factor Value Added Tax (VAT) into the prices of relevant goods and services and remit same to the FIRS as early as possible.
In order to expedite compliance and accessibility of traders to tax services, he assured that the FIRS would introduce more tax service points across the country.
He promised that his leadership would devise Corporate Social Responsibility initiatives aimed at supporting markets and other members of the informal sector as well as creating an ambience that is favourable to trade.