By Steve Agbota & Henry Uche
The Chartered Institute of Taxation of Nigeria (CITN) has urged the federal and state governments to be cautious about tax collection in the country to avoid ‘overtaxation’ or ‘undue taxation’ caused by maladministration and mismanagement of taxes.
CITN made this plea during a training/ workshop session organised by the Institute for Tax/ Finance Reporters/ Correspondents of various media organisations in Lagos, yesterday.
The warning comes as the International Monetary Fund (IMF) recently asked the Federal Government of Nigeria to increase its tax collection to meet up with its current economic burden.
Howbeit the Organised Private Sector, OPS, the labour unions and other stakeholders have reacted to IMF advice and have urged the Federal Government to choose other ways and means to fix its economic and financial challenges.
Speaking at the training, on the topic, ‘Tax Administration and Practice, the Group Head, Strategic Tax & Compliance, Dangote Industries Ltd, Mrs. Titilayo Fowokan, charged the government to strive to understand the chemistry of tax payers (business organisations) and apply the relevant tax.
“While amending the tax laws, please don’t kill the businesses. The government should not tax us to death. In fact the government need to conscientiously engage more tax professionals in the entire to tax administration value chain”
Fowokan who admonished the government to be transparent in its tax administration and management, also urged business operators to as well involve tax experts for necessary guidance and directions.
“The government must give Nigerians reasons to willingly pay taxes by proving that taxes are judiciously utilised. By doing this people and corporate organizations would without hesitation pay their taxes because they can see where their monies are deployed,” she maintained.
Similarly, a tax and accounting expert, Professor, Emmanuel Oyedokun, who spoke on the Nexus between Taxation and the Economic Growth, said it is important for people to pay tax for economic growth and development, but the impact of the tax must not only be said to be written in papers but must be felt by the people in real time.
“There is a connection between tax collected and people’s welfare (economic growth and development). For every government ineffectiveness and inefficiency in the management of taxes, resources are wasted. If taxes are judiciously managed, we shall no course to complain” Oyedokun posited.
On his part, the president of CITN, Adesina Adedayo, who advocated for more tax education across board, suggested that instead of tax increase as IMF proffered, the tax base/net should be expanded to accommodate more people. “Government should deploy more productive ways and means to cushion the effects of bad economy, instead of taking decisions or making policies that impoverish more people”
CITN president maintained that deliberate move act of strengthening public and private Institutions, infrastructure development, human capacity building, sound policy formulation, among others concerted efforts are sine quo non for growing the economy of society.