allAfrica.com: Nigeria: Partners Tax Board to Tackle Multiple Taxes (Page 1 of 1)

Realising that multiplicity of taxes has been one of the biggest impediments to voluntary compliance by taxpayers, the Federal Government vowed to work with the Joint Tax Board to encourage the States' Internal Revenue Boards to initiate necessary legislation to fight this menace.

Addressing participants at 10th Annual Conference of the Chartered Institute of Taxation of Nigeria (CITN), Finance Minister, Dr. Shamsuddeen Usman however said the Federal Government was encouraged that "some states have already taken necessary legal steps to harmonise all taxes, rates, fees, levies etc., collectible within their jurisdiction, including those collected by the local governments."

Speaking on compliance, Usman acknowledged the need to make tax compliance as voluntary as possible, in orderto achieve the desired objective of revenue enhancement, noting that sustainable tax education and public enlightenment programmes would complement efforts in this direction.

"I am reliably informed that some States' Internal Revenue Boards have already embarked on taxpayer sensitization exercises, in order to draw attention to the citizens' rights and duties as taxpayers under the extant tax laws," he added.

He expressed the belief that, this will convince taxpayers and all other stakeholders on why they shouldcontribute to the development of the country as good citizens.

"These public enlightenment programmes no doubt should visibly demonstrate to tax payers, how their contributions are being judiciously utilized and thereby attracting prospective tax payers voluntarily into the net. "

Similarly, the finance minister said, the FiscalResponsibility Act of 2007 further demonstrated theseriousness of Government in the areas of transparencyand accountability and goes a long way to re-assuretax payers that all revenues collected by thegovernment would be judiciously expended. In order toarrive at the desired result, he confirmed, theFederal Government was cooperating with the othertiers of government (States and LGAs) on their need toadopt this Fiscal Responsibility Act soonest. However, concerned with the negative revenueimplications of the prolonged delay in the passage offour other Tax Bills now pending at the NationalAssembly, the President of CITN, Mr. Ayodele Adigun,has urged the Legislature to prioritise theharmonization of the provisions of the pending taxBills and enacted them to law immediately as a meansof achieving the economic objectives of the currentreforms of the nation's tax system.

Adigun noted that, it was no longer desirable for thecountry to have the pending Bills kept in legislativeabeyance when there were much economic gains thatwould accrue to the country by their enactment intolaws. He commended the Executive arm of Government fortaking the initiative that led to the introduction ofthe eight Tax Bills to the National Assembly about twoyears ago and noted that the recent autonomy grantedthe Federal Inland Revenue Service (FIRS) by the FIRS(Establishment) Act No 13 of 2007 and similardevelopments in some States were already enhancing theefficiency of the revenue authorities and revenueprofiles.

According to him, the enactment into law of thepending Tax Bills and allowing the Tax agencies to runtheir affairs without political intervention have thepotential of boosting the nation's earned income fromtax exponentially and by implications provide thevarious tiers of Government of the needed funds toexecute people-oriented projects.

"Our Institute is highly impressed with the FederalGovernment's current initiative targeted at a holisticreformation of the Nigerian tax regime ascharacterized by new tax legislations and amendmentsof some of the major tax laws. Of particular note isthe Federal Inland Revenue Service (Amendment) Act No13 of 2007 which granted autonomous status to therevenue agency. As expected, the implications of thelegislative initiative for a more efficient tax systemin our country are already being felt as many StateGovernments are embracing the option as a means ofimproving tax administration in their jurisdictions."

However, as salutary as the development seems tonational development, we urge the National Assembly togive the remaining four tax Bills before themaccelerated deliberations. This is especiallyimportant if the impact of the delay in passing theBills namely, the Petroleum Profit Tax (Amendment)Bill, the Personal Income Tax (Amendment) Bill, theNational Sugar Development Bill and the Customs,Excise Tariffs, etc (Consolidation) Bill is taken intoconsideration. Our Institute strongly believes thatthe delay in the passage of these Bills is injuriousto our economy, especially the realization of theshort and medium term objectives of the seven-pointeconomic blueprint of the present administration."After all, the wheel of the engine for goodgovernance and sustainable economic development of anycountry can only be oiled by funds, substantial partof which comes from taxes. What we are saying is thatNigeria is the loser each day these Bills remain atthe back burners of legislative proceedings and thatit is high time the National Assembly fast-trackedtheir deliberations as a desideratum for effectivelypositioning the national economy on the track ofsustainable growth", Adigun added.

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