President of Chartered Institute of Taxation of Nigeria (CITN), Mr Adesina Adedayo, on Thursday, warned Federal Government to resist the temptation of introducing more taxes, particularly earmarked taxes as its effects would bring more harm than good.
Mr Adedayo who gave the charge at the 2021 Tax Week with the theme: ‘Efficient Tax Administration as a Panacea for Increased Revenue Generation’, organized by Chartered Institute Taxation of Nigeria (CITN), Abuja & District Society, however, underscored the need to revisit and properly apply incentives regime, in order to avoid revenue loss to the government.
While noting that the theme of the event is apt, Adedayo who was represented by CITN Vice President, Mr Samuel Olusola, expressed optimism that the proposed Finance Bill to be submitted by Federal Government to the National Assembly, “will address the salient issues in some of our tax laws that impede the viability of businesses and impact on the revenue generation capacity of government at national and subnational levels.”
According to him, a review of the details of the budget shows a deficit of N6.4 trillion which is a pointer to the fact that there is a still a lot to be achieved in the area of revenue generation. Therefore, if this is situated in relation to the thematic focus of this programme, we can only say it is quite timely.
“At every opportunity when professionals discuss topical issues, there are always takeaways that could be of immense benefit to governmental authorities. Therefore, I have no doubt that this seminar will produce the needed recommendations that can be leveraged upon by the government to increase revenue generation.
“More than ever before, it has become necessary to intensify the advocacy for tax compliance by all taxable entities and individuals. The number of individuals paying taxes is still not encouraging. At a recent forum, the Chairman of the Joint Tax Board pointed the fact that we currently have a little above 40 million registered taxpayers. It is left to be seen if all are active taxpayers.
“Therefore, sustained advocacy and enlightenment, building confidence through accountability by the government is recommended to bridge the gaps. As an institute, we are doing the bit we can at the national level and through our district societies across all the states of the federation.
“I recall when this event was organized last year, the theme under focus was tax, politics and social contract in Nigeria. Without taxes, there would be no formal and critical structures that would support governance in any civilised society.
“The disconnect between the government and the governed is attributable mainly to either party not living up to its duties and responsibilities in the social contract. This is the bane of the tax system in most developing countries particularly those still grappling with low tax compliance rate compared to the number of citizens and entities who ordinarily should be paying taxes.
“It is important to note that there has been a lot of improvements in addressing the challenges inherent in tax revenue generation in Nigeria. Such efforts must be sustained, with focus on building trust between the government and the governed, tax education and enlightenment programmes, widening the tax base and so on.
“Government should resist the temptation to introduce more taxes, particularly earmarked taxes as its effects would bring more harm than good. Furthermore, our incentives regime should be revisited and properly applied to avoid revenue loss to the government.
“With this background laid, I am delighted to be part of this seminar, given that it would offer a platform for us to provide solutions towards the improvement of the Nigerian Tax System,” he noted.
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