Tinubu Initiates Single-Digit Tax System, Ceases Tax Hikes

President Bola Ahmed Tinubu has taken a decisive step towards economic reform by mandating a streamlined, single-digit tax system. This groundbreaking move aims to simplify the tax structure and alleviate the fiscal burden on Nigerians.

Zaccheus Adedeji, the Chairman of the Federal Inland Revenue Service (FIRS), conveyed this directive during a meeting with Guinness Nigeria’s top executives at the Revenue House in Abuja. He emphasized that this strategy is a key component of the government’s plan to navigate the nation through its current economic hurdles.

In adherence to the President’s vision, the FIRS has pledged not to impose new taxes or raise existing ones. Instead, the focus will be on optimizing the tax system, ensuring that no more than nine taxes will exist post-reform.

Adedeji elaborated, “The President’s directive is clear: a single-digit tax system is on the horizon, signifying that, following the presidential committee’s efforts on fiscal policy and tax reforms, we will consolidate our taxes to a maximum of nine.”

The FIRS has undergone a significant transformation in response to this directive. By reorganizing its operations around the taxpayers, the service has improved its efficiency in tax assessment, collection, and accountability. Taxpayers are now categorized based on their turnover into large, medium, and small groups, streamlining the process and fostering expertise within the FIRS.

This restructuring also introduces a ‘one-stop shop’ approach for taxpayers, particularly those in the large tax bracket, allowing them to manage all tax-related matters in a single office, eliminating the need to navigate multiple departments.

Adedeji reassured taxpayers, stating, “We view you as partners in progress, not as offenders to be pursued. Our goal is to serve you better and grow the national revenue pie.”

Furthermore, President Tinubu’s consumer credit scheme, set to launch soon, is designed to enhance the purchasing power of citizens, thereby boosting corporate productivity and fostering economic growth.

Another significant initiative under President Tinubu’s leadership is the establishment of the Renewed Hope Infrastructure Fund, which promises to be a catalyst for sustainable development across the nation.