The Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, has revealed that only 19% of Nigerians currently pay taxes, according to recent studies conducted by the agency. This statistic underscores the country’s low tax compliance rate, which is among the lowest globally.
Adedeji made this disclosure during the launch of a children’s book titled Taxation: Essential Knowledge for Nigerian Children, published with full support from the FIRS. The book aims to educate young Nigerians about the significance of tax payment from an early age. Adedeji emphasized that tax compliance is positively correlated with tax education, stating, “When children are educated, they grow up to become responsible people, pay their taxes and do what is right.”
The FIRS has set an ambitious target to increase the number of taxpayers to 90% of eligible individuals, aiming to raise revenue generation by 300%. This initiative is part of a broader effort to harmonize the country’s tax system and enhance revenue collection.
The low tax compliance rate is attributed to several factors, including a lack of trust in government institutions, perceived inefficiencies in tax collection processes, and a lack of awareness about the importance of tax payment. Addressing these issues is crucial for improving tax compliance and ensuring sustainable economic development in Nigeria.
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