- Experts harp on good governance, progressive tax system
By Henry Uche, Lagos
In its quest to engender an effective tax system and administration that would contribute substantially to revenue in relation to Gross Domestic Product (GDP), the Chartered Institute of Taxation of Nigeria (CITN) is seeking support from the government at all levels and tax authorities in this regard.
At his inauguration as the 16th President & Chairman of the Council of the Institute, Samuel Olushola Agbeluyi, said opportunities beckon on CITN to play its roles and deliver exceptional outcomes to facilitate national development, assuring that his administration would never falter nor abdicate its responsibilities as tax professionals.
The new CITN President affirmed that though the Institute has been contributing immensely to the growth and development of Nigeria’s economy, it would sustain the passion of bringing to bear its rich knowledge, experience, and assets to deepen taxation, its practices and compliance to improve Nigerians’welfare through sound tax management and administration.
“A number of Nigerians are still outside the tax net. Businesses have not been able to grow effectively because of tax-related issues. I believe if we effectively capture more people into the tax net, the number of taxes burdened on businesses will reduce and our economy blossom.
“We must pay critical attention to research, digital infrastructure, fiscal policy interventions and tax governance. I extend hands of partnership to the government at all levels and every stakeholder in the Nigerian tax space for more profitable tax management for the good of all Nigerians,” he added.
Corroborating the above, the Chairman, Investiture Committee, Daniel – Adebayo Olugbenga, alarmed the government at all levels to judiciously utilised taxes collected for the welfare and economic growth and development of Nigeria.
“Taxes are the lifeblood of any nation, fueling its development, supporting social and welfare programs, and fostering an environment conducive to investment and business growth. Howbeit our Institute and its members would continue to thrive, adapt and contribute to the growth of our nation’s economy” he assured.
In a keynote address, the Executive Director, Finance, Investment & Management Oversight, FBN Holdings Plc, Mr Samson Oyewale Ariyibi, who spoke on the theme, “Nigeria’s Governance and Taxation: A New Dawn for Nigeria” said there is a relationship between the subject and effective governance and a robust taxation system.
According to him, taxation is crucial for economic growth, combating corruption, promoting social justice and strengthening democracy and civic participation. Hence the need for a sound tax system to improve public service delivery, foster peace, and security and build public trust and confidence.
Ariyibi stressed that by prioritizing good governance principles and implementing effective reforms, Nigeria can unleash its full potential and pave the way for a prosperous and inclusive future. He noted that good governance alone is not sufficient to propel Nigeria towards a brighter future, it must be complemented by an efficient and equitable taxation system.
“Taxes is a source of revenue generation, help in economic stability and fiscal discipline, redistribution of wealth and reduction of inequality, economic incentives and behaviour modification, market stabilization and regulation, citizen participation and social contract, as well as international cooperation and development.”
The finance expert maintained that by implementing fair, transparent, and efficient tax policies, Nigeria can harness the potential of taxation to drive inclusive growth, address socio-economic challenges, and build a prosperous future for its citizens.
He added that it is imperative to design a taxation system that is progressive, fair, and encourages compliance while providing relief to those in need. By doing so, he affirmed that Nigeria can bridge the socioeconomic gap, uplift marginalized communities, and create a more equitable society.
“To achieve this ambitious vision, collaboration between the government, tax professionals, and the wider business community is crucial. As CITN members, you possess the knowledge, expertise, and ethical framework necessary to shape Nigeria’s tax policies and ensure their effective implementation.
“I called on the new administration both at the Federal and State levels to re-launch the country into a new era for fiscal prosperity and responsibility for the benefits of the current and the future generation. The Nigerian taxpayers should, more than ever before engage the government on a binding contract between them.
“Government on its part should ensure that the tax system is fair and equitable. Fairness consideration shall include relative taxation of the poor and the rich; corporate and individual taxpayers; cities and rural areas; formal and informal sectors, labour, and investment income; and the older/younger generations.
“The challenges ahead are formidable, but with visionary leadership, sound policies, and the collective efforts of all stakeholders, I have no doubt that Nigeria’s potential will be unlocked, and its people will witness a future filled with prosperity and success,” he assured.