By Sunday Ani
The candidate of the Social Democratic Party (SDP) in the 2023 presidential election, Prince Adewole Adebayo, has lambasted the taxation policy of the President Bola Tinubu-led Federal Government, describing it as the worst in the history of tax administration in Nigeria.
He stressed that in a dysfunctional government like Nigeria’s, one should not be surprised to see a dysfunctional tax system as it is currently being operated.
He stated this while speaking in Lagos at the 2024 annual dinner and awards of The Chartered Institute of Taxation of Nigeria, where he was a special guest of honour.
He said it was a false narrative by the All Progressives Congress (APC)-controlled government that higher revenue through taxation meant development. “No. It does not. Taxation is one of the major ways the government is funded. Tax is a government function.”
“Unfortunately, the government has been dysfunctional over time. In a dysfunctional government system, the tax system will also be dysfunctional. They are not right in their tax policies, as well as fiscal and monetary management. They are not right in many aspects of social delivery. Unfortunately, this is the best they know.”
“Revenue is one of the functions of taxation. The taxpayer is like a blood donor. You don’t drain all the blood in his body. Otherwise, he will die. Moderate the management of taxation and imposition of levies so that there will be disposable income to use in developing the country. Higher revenue that will kill industries and initiatives, and further pauperise the people.”
“It is your responsibility to advise those who are responsible for taxation that higher revenue is not the only success story,” he explained.
Adebayo emphasised that taxation must be used to foster development and redistribute wealth from those who have too much to those who don’t, in order to train the next generation of taxpayers by providing education and social services. A good taxation system, according to him, should encourage business growth, which automatically brings about employment, increased productivity, and ultimately an increased level of taxation in the country.
“There are many ways you can help to create a better society. Taxation is not just about revenue. It can be used as a value for the country. You can give incentives to activities you want people to engage in. You can use taxation to distribute and redistribute wealth in society to make it more equitable. You can use it as a stimulus when there is an economic crisis. It can be used to discipline when we are misbehaving in any aspect of our lives. Taxation is used to control inflation and manage public expenses. It can be used to better the lives of the citizens by providing infrastructure and basic social services.”
“A society that has a good tax system will have hardworking citizens because the real wealth of a country is when people work hard enough and then spare some contributions to society. Taxation is the foundation of any economy, and Nigeria is not an exception. However, you cannot make an omelette without breaking an egg, but when you break an egg and people are not seeing the omelette, that’s when they begin to wonder where the egg is. That is the question to answer for the people who are responsible for the management of our resources,” he stated.
In his short speech, the Minister of Justice and Attorney General of the Federation, Prince Lateef Fagbemi, SAN, who was the special guest of honour, said no society or government succeeds without taxation. “Any country that closes its eyes to taxation is doomed. Countries exist without oil or other natural resources except through taxation, and they fare better than some countries with mineral resources. That was where we started, and that is where we will return,” he stated.
In his opening speech, the host and president of the institute, Mr. Samuel Agbeluyi, said it was a joy that society, and particularly government at all levels, was beginning to take taxation seriously, even as he expressed gratitude to the Federal Government for the current tax reform bill currently at the National Assembly.