The Chartered Institute of Taxation of Nigeria (CITN) has cautioned the federal government against the International Monetary Fund’s suggestion of increasing the tax base to reduce Nigeria’s debt burden.
President and Chairman of CITN, Adesina Adedayo asserted that heeding to the option may be counterproductive.
Adedayo, during a media briefing and training of tax and financial journalists, urged the federal government to instead, widen the tax net to be able to accommodate more taxpayers and increase revenue base.
He argued that many businesses are already overburdened with multiple taxes and advised the authority not to heat up the situation with a tax raise.
He stressed that the institute had always advocated for a widening of the tax net to cater for budgetary expenses.
He said, “To improve tax compliance, education is key. The effect of non-compliance will bring about shame if one is dealing with an international organisation. You can’t be telling them you are playing smart with your government when it comes to tax, they will de-market you. We should engender confidence and educate them on improvement in tax education.”
On her part, Group Head, Strategic Tax and Compliance, Dangote Industries Limited, Dr. Titilayo Fowokan called for lenience and transparency in tax administration and management.
Fowokan while speaking on the theme, ‘Tax Administration and Practice’, tasked government to engage more professionals in the entire tax administration value chain.
She said, “The government must give Nigerians reasons to willingly pay taxes by proving that taxes are judiciously utilised. By doing this, people and corporate organisations would without hesitation pay their taxes because they can see where their monies are deployed.”
Also speaking, a Professor of Accounting and Financial Development, Lead City University, Emmanuel Oyedokun who spoke on ‘Taxation and the Economic Growth: Discussing the Nexus’, stressed that government must the impact of tax to be felt by the people in real-time.
“There is a connection between tax collected and people’s welfare. For every government’s ineffectiveness and inefficiency in the management of taxes, resources are wasted. If taxes are judiciously managed, there won’t be reason to murmur “, he said.
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