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Tag: Tax

  • Hardship: Fashola advises Lagos Govt to reduce levies, taxes

    Hardship: Fashola advises Lagos Govt to reduce levies, taxes

    A former governor of Lagos State, Mr Babatunde Fashola, has advised the Lagos State Government to reduce levies and taxes as a measure to ease the current social economic challenges on the residents.

    Fashola said this at the Lagos State 18th Edition of the Executive and Legislative Parley held on Friday at the Eko Hotels and Suites, Victoria Island, Lagos.

    The annual parley is held to review the activities and mandates of each of the arms of government.

    It discusses the prevailing social-economic issues and develop a strategy for dealing with the potential areas of conflict in the overall interest of the state.

    This year’s theme is: “Engaging all for Inclusive Governance: Hands on for a Greater Lagos Rising.”

    It was attended by legislators in the Lagos House of Assembly, Representatives of the various constituencies of the state in the National Assembly, Governing Advisory Council members and other key stakeholders.

    Fashola, who was the immediate past minister of Works and Housing, applauded Gov. Babajide Sanwo-Olu for rolling out other measures to cushion the effect of subsidy removal.

    He said aside the school feeding initiative in schools and reducing the cost of transportation, the reduction of levies and taxes in other sectors would help a great deal.

    “The Lagos State government deserves to be commended for the feeding initiative and for also reducing the cost of transportation in the state; this is commendable and I applaud Gov. Sanwo-Olu.

    “I’d like to make additional suggestions. I’d like to advise that, in line with finding succour for residents of our great state with the current economic situation, I think reducing levies and taxes would help.

    “There must be a balance. I remember during the Ebola crisis, the Association of Tourism and Hotel Owners approached us (government) then that we should suspend the Consumption Tax, which we did.

    “These are some of the ways we can bring relief to the people of Lagos State.

    “It is important to increase the quantum of money for disposal. There must be a balance in governance,” Fashola said.

    Fashola, a Senior Advocate of Nigeria (SAN), urged the state government to find a way of redistributing wealth and give small businesses succour.

    “We must meet with small businesses across the senatorial districts, state legislature should hold town hall meetings to understand their needs and demands.

    “We have more money in the hands of the people; we need to roll out public works in construction, supply, etc. We need to find a way to redistribute wealth,” the former governor said.

    According to Fashola, representatives of the people at various levels must check themselves and see if they have represented the interest of the people they represent.

    He said representatives of the people should ask themselves if they had represented the people since they were appointed or elected.

    “They should ask, do I still live in the constituency I represent; do I truly represent them, do I know where it pinches and do I know where it hurts?” he said.

  • Why our CEO cannot come to Nigeria – Binance

    Why our CEO cannot come to Nigeria – Binance

    Binance has told the Nigerian House of Representatives that its Chief Executive Officer (CEO), Richard Teng cannot come to the country.

    TheNewsGuru.com (TNG) reports the Legal Counsel to Binance, Mr Senator Ihenyen said this on Monday before a hearing of the House Committee on Financial Crimes.

    The hearing was on a petition by the Empowerment Fund for Nigerian Youth Initiative and the Niger Delta Youth Council of Nigeria on several crimes allegedly committed by Binance.

    Binance, an online financial company, has been operating in the cyber space of Nigeria for more than six years with no less than 20 million Nigerians on the platform.

    The firm had been accused of terrorism financing, tax evasion, money laundering and the exploitation of 20 million young Nigerians on the platform in the last six years.

    The Legal Counsel to Binance disclosed that the company had responded in writing to all the allegations levelled against it.

    He stressed that the company was also ready to provide more answers in writing if the need arises in the cause of the hearing.

    Ihenyen, however, explained that the company was concerned over the safety of its officials in Nigeria following the recent arrest of two senior officials of the company.

    The counsel explained that two top officials of the company who came to Nigeria were arrested by the office of the National Security Adviser (NSA).

    However, Chairman of the Committee, Rep. Ginger Obinna (LP-Abia) said that the committee had taken a position at its last sitting not to entertain legal representation from Binance.

    Obinna said the leadership of Binance should be arrested and be brought to the committee to answer questions of the grave allegations levelled against the company.

    “This committee has resolved to recommend to the house to invoke its constitutional powers by issuing a subpoena and a warrant for Binance executives to be arrested and brought to this committee to answer these questions on terrorism, money laundering and other financial crimes as stated in the petition including evasion of tax,” he said.

    The Chairman thanked the petitioners for unearthing the grievous financial crimes and the exploitation of 20 million young Nigerians in the last six years.

    Moving the motion earlier for arrest of Teng, Rep. Isah Dogonyaro (APC- Jigawa State) said that the committee earlier invited the CEO of Binance to appear and respond to questions on terrorism, tax evasion and money laundering against the company but failed to appear.

    Dogonyaro said that the committee gave another chance to enable the Binance executive to appear on March 4, 2024 but refused to appear again.

    According to him, the refusal to appear is an insult on the committee and on the Nigerian people.

  • MultiChoice lands in trouble over N1.8trn unremitted tax

    MultiChoice lands in trouble over N1.8trn unremitted tax

    The House of Representatives is set to probe the alleged N1.8 trillion tax owed the Federal Government by Multichoice group, the operator of DSTV and GoTV.

    The resolution followed the adoption of a motion by Rep. Saidu Abdullahi(APC-Niger) at plenary in Abuja on Wednesday.

    Moving the motion, he said that Multichoice, a prominent multinational corporation operating in Nigeria, had been accused of non-remittance of tax revenues due to the Federation.

    This, he said was as evidenced by the suppression of information discovered from the submissions in their home country.

    According to him, the Federal Inland Revenue Service (FIRS) had engaged a consultant in 2021 under a Whistle blowing contract to carry out an audit of the tax obligations of Multichoice Nigeria.

    This, include MultiChoice Africa with a view to ascertaining the company’s tax indebtedness to the Country.

    He added that their findings led to a back audit and investigation carried out by the FIRS from 2011 to 2020.

    Abdullahi said previous attempt by FIRS to recover unpaid taxes through legal means; including court proceedings and resolution to settle out of court by both parties did not yielded result.

    “The systems audit and investigation revealed enormous indebtedness to the tune of over N1.8 trillion in back total taxes for MultiChoice Nigeria.

    “This also includes a $342 million in Value-added tax, for MultiChoice Africa that had never paid any taxes since they started business operations in Nigeria.

    He said both amounts were levied upon the Multichoice Group by the FIRS.

    He said that there were ongoing arrangements to sell Multichoice Nigeria and other Multichoice Group Subsidiaries in Nigeria to a foreign Interest, while the tax indebtedness remained outstanding.

    He said if urgent actions were not taken to recover the tax revenues from the Multichoice Group, Nigeria could lose such huge revenue that could inject life into the economy.

    Adopting the motion, the House cautioned potential buyers of Multichoice Nigeria, Multichoice Africa or any other Subsidiaries of the Multichoice group operating in Nigeria to be aware of the alleged outstanding indebtedness

    This, the House said might have been covered in their papers, while mandating the Committee on Finance to initiate an urgent and comprehensive investigation into the non-remittance of tax revenues by Multichoice to the Federation.

    This, according to the House should be particularly focus on the suppression of information discovered from their submissions in their home country and report back to the House within four weeks.

  • Pressure mounts on Aisha Achimugu to pay taxes after lavish birthday bash

    Pressure mounts on Aisha Achimugu to pay taxes after lavish birthday bash

    The FCT-Internal Revenue Service (FCT-IRS) on Saturday reminded an Abuja socialite, Mrs Aisha Achimugu to fulfil her tax obligations.

    FCT-IRS posted on its social media X handle that it wished the socialite warmest birthday as she lavishly celebrated her 50th birthday setting the Caribbean state of Grenada agog in a seven-day bash.

    Achimugu is the founder and managing director of Abuja-based Felak Concept Group. She turned 50 on Jan. 22.

    “The FCT-Internal Revenue Service extends our warmest birthday wishes to you!

    “May this special day be filled with joy and blessing. Remember to fulfil your tax obligations by filing your annual tax returns.’’ FCT-IRS posted.

    A dedicated website for the seven-day birthday party included information regarding visa arrangements, available chauffeurs, travel schedules, and the nearest airport to the event venue.

    The festivities began on Jan. 16 with the arrival of guests. The following day, the event started with a welcome breakfast, exploring the resort and mingling.

    On day four, attendees wore vibrant African attire for special performances, including drum dances. A bonfire provided a cosy backdrop as guests gathered for an evening of warmth and music.

    Day Five showcased performances by a local band, various cocktails, and a retro disco party. On the sixth day, guests embarked on an island excursion.

    On Jan. 23, the seventh and final day began with an all-white breakfast culminating in a luxurious dinner-themed: ‘glitz and glam’ before guests bid farewell to Grenada.

    Many socialites and prominent Nigerians, including a prominent governor of one of the Southwest states, reportedly graced the birthday bash.

    Those who graced the birthday bash were said to have flown from Nigeria to Grenada in hired jets.

    Some of them described the birthday bash as one of the most lavish parties they had ever attended or heard of.

    The celebrant hired Calivigny Island for a week and booked rooms for her guests at Silversand, Grenada.

    Mrs Achimugu was reported to have changed clothes at the party at least 30 times, with each dress reportedly costing thousands of dollars.

    These were in addition to the high-end clothes she wore for a photo shoot with a celebrity photographer before the event.

    Throughout the evenings, she wore costly diamond jewellery, designer shoes, and carried Hermes crocodile leather handbags, each estimated to cost between 50,000 dollars and 80,000 dollars.

    One of the many gatherings occurred aboard the Silver Angel, a yacht sailing on the Caribbean Sea under the flag of the United Kingdom.

    According to reports, Achimugu spent nearly one million dollars (more than N1 billion) to rent the island for the entire week.

    Quite a number of local and international A-list musicians and entertainers flew in to perform at the various events.

    Artistes who performed included American saxophonist and composer, Kenny G, Nigeria’s Waje, Flavour, Adekunle Gold, Asake and Mr Killa, a Grenadan musician.

    The event was filled with lots of activities from swimming to extravagant meals, bonfires, kayaking and treasure hunting.

    The Nigerian version of the birthday bash continued on Friday at Transcorp Hotel, Abuja and another one on Saturday at an undisclosed location.

    Achimugu holds a Bachelor’s degree in Accounting from the University of Jos. She also holds an honorary degree of The Commonwealth University, Belize, also in the Caribbean.

    She married Engineer Sulaiman Achimugu, a former Managing Director of the Pipelines and Products Marketing Company and they have three children.

    Mr Achimugu lost his life to Coronavirus in 2020.

  • No plans to increase tax rates – FG assures Nigerians

    No plans to increase tax rates – FG assures Nigerians

    Minister of Finance and Coordinating Minister of Economy, Wale Edun has disclosed the federal government has no plans to increase tax rates.

    Edun made the disclosure on Monday during an interactive session with members of the House of Representatives committee on appropriation.

    The Minister said the government’s target is to improve collection efficiency to get more people into the tax net.

    “I would say there is no plan for the increase in the tax rates as such. The plan is to increase the revenue from taxation,” Edun said.

    He went further to say: “The plan is to increase taxation returns — tax revenue as a percentage of GDP from around nine percent as it is now within three years to 18 percent which is closer to the African average.

    “In a government that is dependent on foreign direct investment, including domestic investment is dependent on private sector investment to grow the economy, create jobs and reduce poverty.

    “The intention would be where possible, to reduce taxes to allow people to have more money to invest in job creation and production. I think it is very important to make that clear.

    “So, the emphasis is on collection, it is not on increasing the tax rate. It is increasing the efficiency of tax administration, particularly collection”.

    Edun stressed low taxation attracts investment, allowing people to have more money to inject in job creation.

  • How companies paid N1.75trn as tax for Q3 2023

    How companies paid N1.75trn as tax for Q3 2023

    Companies paid N1.75 trillion as taxes in the third quarter of 2023, the National Bureau of Statistics (NBS) declared in its Company Income Tax (CIT) Q3 2023 report released in Abuja on Monday.

    On a year-on-year basis, the CIT collections in the third quarter of 2023 increased by 115.9 per cent compared to what obtained in the corresponding period of 2022.

    According to the report, the third quarter payment shows a growth rate of 14.27 per cent on a quarter-on-quarter basis compared to the N1.53 trillion CIT paid in the second quarter of 2023.

    The report explained that local payments received were N651.63 billion, while foreign CIT payment contributed N1.10 trillion in the third quarter of 2023.

    It explained also that on a quarter-on-quarter basis, the Education sector recorded the highest growth rate at 59.6 per cent, followed by public administration and defence, compulsory social security at 57.04 per cent.

    “On the other hand, activities of households as employers, undifferentiated goods-and-services-producing activities of households for own use had the lowest growth rate at minus 74.34 per cent.

    “This was followed by water supply, sewerage, waste management and remediation activities at minus 73.25 per cent,’’ it stated.

    In terms of sectorial contributions, the report showed that largest shares in Q3 2023 were ICT at 26.18 per cent, manufacturing at 23.9 per cent and mining and quarrying at 11.86 per cent.

    The NBS stated that on the other hand, activities of households as employers, undifferentiated goods-and services-producing activities of households for own use recorded the least share at 0.0 per cent.

    “This was followed by water supply, sewerage, waste management, and remediation activities at 0.04 per cent and activities of extraterritorial organisations and bodies at 0.10 per cent,’’ it added.

  • Court deletes laws denying tax debtor’s right of appeal

    Court deletes laws denying tax debtor’s right of appeal

    A Federal High Court, Abuja, on Thursday, struck down some “offending provisions” which takes away the right of appeal of a tax debtor.

    Specifically, the affected provisions include the Tax Appeal Tribunal (Procedure) Rules ( 2021), the Federal High Court of Nigeria (Federal Inland Revenue Service) Practice Directions (2021) and the Federal High Court of Nigeria (Tax Appeals) Rules (2022).

    Justice James Omotosho, in a judgment, held that the provisions were unconstitutional as they constrained the constitutionally provided right of appeal.

    The first provision voided by the court was Order III Rule (6) (a) of the Tax Appeal Tribunal (Procedure) Rules (2021).

    It prescribes that an aggrieved person, challenging the tax charged by the Federal Inland Revenue Service (FIRS) or any relevant tax authority,  shall pay 50 per cent of the disputed amount into any account so designated by the Tax Appeals Tribunal before such appeal could be heard.

    The second provision affected was Order V Rule 3 of the Federal High Court of Nigeria (Federal Inland Revenue Service) Practice Directions (2021).

    It prescribes that where a person intends to challenge an assessment served on him or her, he or she shall pay half of the assessed amount into an interest yielding account of the Federal High Court, pending the determination of the application/ proceedings.

    The third provision was Order V Rule 1 of the Federal High Court of Nigeria (Tax Appeals) Rules (2022).

    It prescribes that where an appellant is appealing against the decision of the Tax Appeal Tribunal, the sum contained in the decision shall be deposited in an interest yielding account maintained by the Chief Registrar of the Federal High Court.

    A former President, Nigerian Bar Association (NBA), Joseph Daudu, SAN, had filed the suit marked: FHC/ABJ/CS/12/2022.

    Daudu, who argued, among others, that the provisions were unfair, unlawful and a violation of the right to appeal, sued the Minister of Finance, Budget and National Planning, who made the Tax Appeal Tribunal (Procedure) Rules (2021) as 1st respondent.

    The applicant also joined the Chief Judge of the Federal High Court, who made the Federal High Court of Nigeria (Federal Inland Revenue Service) Practice Directions (2021) and the Federal High Court of Nigeria (Tax Appeals) Rules (2022), and the Attorney General of the Federation (AGF) as 2nd and 3rd respondents in the case.

    Delivering the judgment, Justice Omotosho said: “Even though the 1st respondent (the minister) is empowered to make rules for the conduct of appeal, he is not expected to construct an embargo to the enjoyment of the right to appeal of any appellant.

    “The right to appeal is a constitutional right and the 1st respondent cannot take away such right through the making of a subsidiary legislation.

    “The law is trite that where any law or subsidiary legislation contravenes the provision of the Constitution, it shall be declared void to the extent of its inconsistency.

    “The said provisions being challenged by the applicant were made to favour the Federal Inland Revenue Service without any attempt to balance the interest of a tax debtor.

    “For a tax debtor, who is unable to afford to deposit the entire assessed sum of money, he is automatically deprived his right of appeal.”

    According to him, this court, as a court of justice, will ensure that justice is done to all parties regardless of their status.

    “This court by virtue of Section 6(6)(b) of the Constitution is empowered to determine issues between government and persons,” he said.

    The judge said that the court would not allow an unjust provision to cripple the constitutional rights of the applicant.

    “In final analysis, I therefore do not hesitate to strike down the offending provisions which in the opinion of this court substantially takes away the right of appeal of a tax debtor such as the applicant,” Justice Omotosho said.

    The judge, therefore, proceeded to declare the provisions of Order III Rule (6) (a) of the Tax Appeal Tribunal (Procedure) Rules, 2021 as “unconstitutional, null and void.

    He declared that the provisions is also contrary to the provisions of Section 36(1) and (2), Section 6(6) (a) of the 1999 Constitution of the Federal Republic of Nigeria (as amended) and the doctrine of separation of powers.”

    He also declared that the provisions of Order V Rule 3 of the Federal High Court of Nigeria (Federal Inland Revenue Service) Practice Directions, 2021 “is unconstitutional, null and void.

    He issued an order striking down (deleting) the provisions of Paragraph V Rule 3 of the Federal High Court (Federal inland Revenue Service) Practice Directions 2021, or any other similar provision therein, for being unconstitutional and in excess of the powers of the 2nd respondent (the Chief Judge of the Federal High Court) to issue practice directions.

    He also ordered the striking down (deleting) of the provisions of Order V Rule 1 of the Federal High Court of Nigeria (Tax Appeals) Rules 2022, for being unconstitutional and in excess of the powers of the 2nd respondent to issue practice directions and Rules of court.

    The judge thereafter ordered the striking down (deleting) of the provisions of Order IlI Rule 6 (a) of the Tax Appeal Tribunal (Procedure) Rules, 2021 for being unconstitutional, null and void and in excess of the powers of the 1st respondent (the Minister of Finance) to make Rules prescribing the procedure and conduct of appeals before the tribunal.

  • ICYMI: Tinubu receives ‘quick win report’ on fiscal policy, tax reforms

    ICYMI: Tinubu receives ‘quick win report’ on fiscal policy, tax reforms

    President Bola Tinubu on Tuesday, received the ‘Quick Win Report’ on fiscal policy and tax reforms from the committee tasked with improving the nation’s revenue profile and business environment.

    The report was presented to the president at the presidential villa in Abuja by the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr Taiwo Oyedele.

    Receiving the report, the president commended the team and assured them of his support for the review and implementation of key recommendations.

    ”I have listened attentively to your report. Charting the critical path forward for Nigeria’s economic recovery is crucial to all of us. I want to say thank you to your team,”he said.

    The president granted the request of the committee to address a meeting of the Federal Executive Council (FEC) and appraised cabinet members of their work and expected outcomes to facilitate economic growth.

    Tinubu directed Ms Hadiza Usman, Special Adviser on Policy Coordination to coordinate relevant government officials for the session.

    The acting Chairman of the Federal Inland Revenue Service (FIRS), Mr Zacch Adedeji, pledged to ensure the implementation of the recommendations of the committee, as they may apply, pending the approval of the president.

    Adedeji declared that beyond supporting the fiscal and tax reforms, the FIRS would explore opportunities to diversify the nation’s revenue sources, as the historical over reliance on oil has made the economy vulnerable.

    He said, ”Nigeria’s fiscal policy serves as the foundation of economic stability. It dictates how government collects, manages and allocates resources for the betterment of our people.

    “A well-developed fiscal policy is crucial for provision of infrastructure, healthcare, education and social services to our growing population. Tax reforms are an integral part of a robust fiscal policy.

    ‘”While our current tax system has contributed significantly to our revenue, there remains room for further enhancement that can be driven with digital technology.

    “To achieve this, we are collaborating with the Presidential Committee to streamline our tax laws, improve voluntary compliance, and expand the tax base to ensure equity and fairness.”

    In his prayers to the president, Mr Oyedele, among others, called for an emergency economic intervention bill (Executive Bill).

    He also called for the issuance of Presidential Executive Orders to address the duplication of functions across the public service.

    He said, “And to ensure prudent public financial management in a bid to optimise value from government assets and natural resources.”

  • Experts back FG proposal to tax wealthy Nigerians

    Experts back FG proposal to tax wealthy Nigerians

    Some financial experts have supported the Federal Government proposal to tax additional wealthy Nigerians, describing  it as a means of income redistribution that can enhance the country’s fiscal revenues.

    They said this in separate interviews with the News Agency of Nigeria (NAN) on Friday in Lagos.

    The Chief Executive Officer, Center for the Promotion of Private Enterprise (CPPE) Dr Muda Yusuf, said the government proposal was welcome idea.

    “This approach is a form of progressive tax, because high networt individuals are expected to pay more taxes.

    “It is a means of income redistribution and a common practice in most civilised countries where there is economic development,” Yusuf said.

    He condemned a situation where wealthy citizens do not remit the right percentages of taxes to appreciate government authorities.

    “Their tax remittance is not commensurate to their networth and affluence lifestyle. They often short-change the government,” Yusuf said.

    In his view, a former President, Chartered Institute of Taxation of Nigeria (CITAN), Dr Mc-antony Dike, described the government proposal to tax more wealthy citizen as constitutional.

    Dike said, “Our tax laws dictate that every Nigerian who earn an income whiether legitimately or otherwise must pay their tax.

    “Indeed the Personal Income Tax Act 2011, as amended, removed the exemptions it granted to the president of the Federal Republic of Nigeria”, adding anybody who earn legitimate income legitimately or must pay tax.”

    He noted that rich Nigerians who do not pay tax were denying government the revenue to provide public utilities for the citizen.

    “As a matter of fact, a country like South Africa has demonstrated greater tax compliance culture, than we have in Nigeria.

    “Indeed, before the advent of Value Added Tax in South Africa in the late 1990s, personal income tax is contributing close to 60 per cent of total tax collection in that country,” Dike said.

    Also, the President Standard Shareholders Association of Nigeria, Mr Godwin Anono, said the federal government proposal to tax more wealthy Nigerians was a novel initiative.

    “The planned policy is a sort of reduction of economic inequality in our society.

    “Where the elite are expected to take care of the economically vulnerable citizen through its taxes,” Anono said.

    He advised that the federal government should employ technology to bring more eligiable tax payers into the tax net.

    NAN reports that The Federal Government has stated its plan to begin taxing wealthy Nigerians to achieve its 18 per cent Tax-GDP ratio revenue target.

    This was disclosed by Mr Taiwo Oyedele, Chairman, of the Presidential Committee on Fiscal Policy and Tax refrorms.

    Mr Taiwo noted that the move was part of President Bola Tinubu’s reforms as the federal government’s aims to achieve an 18 per cent Tax-to-GDP ratio within three years.

    According to him, the plan is to enable the rich pay more tax in favour of the less-priviledged.

    Taiwo also envisage a reduction in the corporate income tax rate below the current rate of more than 40 per cent to help boost business.

  • FIRS will not increase taxes further – Acting Chairman assures

    FIRS will not increase taxes further – Acting Chairman assures

    Acting Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, has assured Nigerians and corporate organisations that the FIRS will not further increase taxes despite its resolve to increase the country’s tax-to-GDP ratio to 18 per cent from 10.86 per cent.

    Adedeji said such resolve would not necessarily lead to increase in taxes or introduction of new taxes as the President Bola Tinubu-led administration is determined to create a wholesome environment for businesses to flourish.

    The FIRS chairman had said the agency under his leadership would, in the next three years, achieve an eight per cent rise in tax-to-GDP ratio to surpass Africa’s average of 16.5 per cent without stifling investment or economic growth.

    The plan had triggered muffled apprehensions among entities corporate that the decision could cause an increase in tax rates or introduction of new ones.

    Addressing representatives of top large tax-paying companies during a get-together, Adedeji said, “Our belief, understanding and vision as a revenue-generating agency is not to introduce any new tax as we only want to use data to improve compliance.”

    A statement by his Special Adviser on Media and Communication, Dare Adekanmbi, quoted the FIRS chairman as saying that the invited companies and those willing to voluntarily carry out their tax obligations have nothing to be afraid of.

    “Our plan is simple. We want to grow tax revenue and we only want to tax prosperity and not poverty. Therefore, it is not in our interest to kill the trees that bear the fruits. My first ‘love letter’ to you is to appreciate what you have done. So, you don’t have anything to be afraid of.

    “We will not collect what is not due to us. But we don’t want anyone not to pay what is due to us. Fair engagement is our plan. Rest assured that the 18 per cent tax-to-GDP target will not translate to increase in taxes,” he said.