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Omodele Adigun
The President of Chartered Institute of Taxation of Nigeria (CITN), Dame Olajumoke Simplice, has blamed Nigerians’ outcry against the new tax regime on long period of apathy and lack of focus to make taxation the bedrock of government’s revenue mobilisation.
According to her, both government and the governed are accustomed to living off revenue from oil and other mineral exports, hence the misconception to see the present administration’s emphasis on taxes as a“government of taxation” .
Dame Simplice, who stated this at the 41st Induction of 586 new members of the Institute Saturday in Lagos, advised the government to avoid the propensity to introduce earmarked taxes with the intention of raising revenues, while neglecting the impact such action would have on businesses and economic activities.
“As a matter of fact, the thinking of Section 2.2.6 of the revised National Tax Policy 2017 is that our ‘taxes should be few in number, broad based and high revenue yielding’. In effect, the administration of taxes should be simplified for ease of enforcement and compliance.
“More than ever before, there is a compelling need to reinvigorate our enlightenment and education mechanisms. The National Orientation Agency (NOA) must wake up to its statutory responsibilities. At governmental level, it is important that tax policy initiatives and reviews in tax laws are well thought out and followed through,” she added.
On the 2019 Finance Bill just passed into law by the National Assembly, the CITN boss said it was a welcome development “as it is as a result of several years of persistent calls by CITN for its re-introduction since its stoppage after the administration of Ibrahim Babangida.”
Citing its benefits to the economy, she said: It “will, among other things, promote fiscal equity and tax incentives to mainstream small and medium scale businesses in driving economic growth and development. The Bill will encourage dynamic growth in government revenue drive and give legislative backing to measures geared towards addressing loopholes in tax laws.”
On VAT increase, Dame Simplice said: “While CITN maintains that there is need to increase indirect taxation, we also hold the government accountable for the diminishing infrastructure and standard of living of the populace. The government should intervene in critical sectors lacking in required infrastructural base for revamped economic prosperity of the nation.”
She, however, advised the new inductees to commit themselves to CITN ideals by being professionals in their dealings.
“You are expected to conduct your affairs with decorum, bearing in mind that there are penalties for misconduct. The Institute has a mechanism for monitoring members in practice towards ensuring strict adherence to professional ethics and standards. This is intended to ensure that members in practice conform to best practices, standards, decorum and integrity in their relationship with clients, government and indeed all stakeholders in the tax system”
