***As FG Sets N19.4trn Revenue Target for 2024
By Tony Obiechina, Abuja
The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun has urged the Federal Inland Revenue Service (FIRS) to rise up to the challenge of mobilising revenue for the country as the Tinubu administration is poised to grow the economy through revenue without borrowing.
Speaking while declaring open the FIRS 2024 Strategic Management Retreat in Abuja on Wednesday, the Minister said considering what is going on around the world today with an elevated and sustained increase in interest rates, borrowing has made that more compelling.
The theme of the 22-day retreat held at the Transcorp Hilton hotel is: Re-imagingTax Administration for Equity and Economic Growth”.
The Minister said, “I would like to implore you to really take advantage of your being here together to say what’s on your mind. Come up with your ideas, your solutions, and your suggestions.
“This is the right forum for you, for you to think outside the box. You will be commended or rewarded for it rather than if you keep quiet, keep your ideas to yourself. Be bold. Be courageous. That is the mandate of the president.”
In his welcome remarks, the FIRS Executive Chairman, Dr Zacch Adedeji said the new operational structure that is being established at the Service will eliminate confusion and redundancy in tax administration in the country.
The FIRS Boss said the event marks a historic moment as the Service unveils the new FIRS organizational structure, a critical milestone in its commitment to revolutionize tax administration in Nigeria.
He said the cornerstone of this paradigm shift, is the establishment of a customer-centric organizational structure designed to streamline processes and enhance efficiency in the FIRS tax operations.
He said, “We are not merely adapting to change; we are leading it. The forthcoming structure, set to kick off from February 2024, embodies our dedication to modernize and digitize the tax administration landscape in Nigeria.
“In our pursuit for a more efficient and contemporary tax administration methodology, we are embracing an integrated tax approach, leveraging technology at every step. This approach positions FIRS at the forefront of innovation, ensuring that we meet the evolving needs of our taxpayers in a rapidly changing world.
“The structure advocates for a comprehensive approach to taxpayer services, consolidating our core functions and support under one umbrella. By tailoring our services to specific taxpayer segments, we aim to simplify the taxpayer experience. No more complexities, no more overlaps—just a seamless and user-friendly interaction for every taxpayer.
“In a groundbreaking move, we are shifting away from traditional tax categorization. Instead of maintaining different departments for distinct tax categories, the new structure formulates taxpayer segments based on thresholds.”
Adedeji explained that the tailored approach ensures that taxpayers are guided and serviced according to their specific needs, eliminating confusion and redundancy in tax administration.
“Behind this transformative initiative are carefully considered considerations detailed in our operations plan. We highlight the rationale behind our integrated approach, the benefits of comprehensive taxpayer services, and the logic behind tailored taxpayer categories, which will be presented to management in the subsequent sessions of this workshop.
“These considerations set the stage for a more responsive, efficient, and user-friendly tax administration system.
Let me assure you that due process will be followed in this reformation.
“Extensive re-orientation and change initiatives will be implemented to ensure that no one is left behind. We recognize the need for meticulous planning, effective communication, and unwavering commitment to navigate this transformative journey successfully.
“As we stand united in this endeavour, let me reassure you that FIRS is already a formidable force, and with these new efficiencies, we can indeed meet and exceed our targets. This is not just a restructuring; it is a catalyst for a monumental leap forward, a collective investment in our shared future, and an unyielding commitment to excellence in tax administration”, he added.
Speaking further, the FIRS Boss said the forthcoming structure is not just a set of reforms; “it is a commitment to redefine FIRS’s role in shaping a modern, efficient, and customer-focused tax administration system. Through innovative organizational restructuring and process optimization, FIRS is committed to fostering a taxpayer-friendly environment that aligns with global best practices and positions Nigeria as a leader in contemporary tax administration.”
He urged all taxpayers to embrace change, to be pioneers in this transformative journey, and to envision the future the government is building.
“Together, we will redefine excellence in tax administration, setting new standards and inspiring others to follow,” he stated.
Meanwhile, the federal government has set a tax revenue target of N19.4trn for the Federal Inland Revenue Service in the 2024 fiscal period.
The amount represents an increase of over N9trn when compared to the N10trn target set for the FIRS in the 2023 period.
It is also N7trn higher than the N12.3trn which the Service generated in 2023.
The target was revealed on Wednesday at its 2024 strategic management retreat.
According to the FIRS, oil revenue target was N9.960trn, which is higher by 214 per cent than the N3.172trn actual revenue in 2023.
On the other hand, non-oil revenue target was N9.453trn in 2024 as against the N9.202 in 2023. READ ALSO:
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Oil revenue contributed only 25.6 per cent of 2023 revenue while 2024 Medium Term Expenditure Framework target anticipates 51 per cent contribution by OIl.
The FIRS Executive Chairman, Zacch Adedeji, said the target is achievable with the series of reforms being implemented by the Service.
He said, “Our focus is to drive for long-term compliance. And in a few minutes now, by those rules, we have the new structure that we have. And what we’ve done in general is to move from functional or type of taxi units to customer-centred.
“And we want to use that to drive compliance because the focus cannot be on investigation. The real strategy is to drive compliance and the way to do it is that there will always be consequences for no compliance.
“So, our focus is not to go and tax the informal sector. Our focus is actually to bring the informal sector to the sector. The focus should not be let’s go and tax informal. The focus should be to move the informal sector to the formal sector, improve their skill and then we can then tax them”.
