Tax experts task FG on effective tax policies, call for reduction on cost of governance

COMFORT EKELEME, Business Editor

 

 

Tax experts recently gathered in Lagos to proffer solutions to the factors militating against harnessing Nigeria’s huge tax potential

 

The event was the 2023 National Tax Conference on the Fiscal Policy & Tax Reforms: Challenges & Prospects.

 

Chief Host and Managing Partner/Chief Executive Officer Okwudili Ijezie the inability of the government to efficiently raise revenue has led directly to an over-reliance on borrowing to finance public spending.

 

He said a government that cannot properly fund itself will also lack the flexibility or fiscal scope to sensibly manage the economy or respond to external shocks.

 

According to him, the conference is one of the company’s interventions at a time when the country is battling impending debt distress, with a strive to grow the capacity of generating more revenue from within.

 

Speaking further, he said “When President Tinubu set up the tax reform committee, I saw the need to come out and assist the committee, to get people enlightened about what the committee is doing.

 

“The theme of the conference is ‘Fiscal Policy and Tax Reforms in Nigeria: Challenges and prospects’ the ideal is to let participants know that there are many challenges ahead and to proffer some prospects for them and to the government and for all of us to see how we can assist the committee.

 

“A lot of people are overlooking what President Tinubu is doing, but I know he is planning big, the only problem now is the challenge he has about the legitimacy of his presidency, especially the Chicago saga and the Supreme Court.

 

“But as soon as that is sorted out, if it is in his favour, Nigerians will know that the other two bold reforms are child’s play about tax reforms.

 

“There is a need for him to reduce the cost of governance because if he doesn’t do that, he might need to build more prisons for people who will be defaulting in taxation because taxation should be such that people will see how the benefits are been utilized so that they can voluntarily pay,” he said.

 

Ijezie further described the Presidential Committee on Fiscal Policy and Tax Reforms, as a reflection of President Tinubu’s commitment to bringing about transformative reforms in fiscal policy and taxation, noting that the move is hinged on the President’s promise to remove all barriers to business growth in Nigeria.

 

He said, “I am passionate about taxation, and I have volunteered my services, pro bono (free of charge), to assist in this direction, via this National Tax Conference. Let every other Nigerian play in his or her circle of competence, so that the future will be rosy for us all.

 

In his opening remarks, Managing Partner, Kenneth Odusanya & Co. Mr. Kenneth Odusanya described the fiscal policy as the government’s strategic plan for running the economy in the short, medium, and long term by prioritising spending, borrowing and taxation.

 

He said that the reality is that as an economy moves through cycles of boom and recession and as different leaders and political parties move in and out of power fiscal priorities will change.

 

Odusanya said, “Despite the number of changes Nigeria has made to its tax system in the past, there is still a very long way to go and the current situation of things is a big disincentive to doing business.

 

“It is my opinion that taxes should be collected effectively and fairly, both in equitable and monetary terms, for our benefit, so as to ensure our desired growth and development. The greatest need of businesses in Nigeria today as a matter of priority is the removal of tax disincentives hindering investments and business growth.”

 

Professor Friday Ndubuisi, Pioneer & Immediate Past Vice Chancellor, Christopher University, Mowe, Ogun State, urged the government to justify the taxes collected from taxpayers by providing the necessary public goods, saying a situation where the people are left to provide everything for themselves even after paying their taxes gives room for tax evasion.

 

He said, “We were paying tax regularly while I was the vice-chancellor of Christopher University, but at the end of the day we were providing water for ourselves, providing light for ourselves and providing security for ourselves. Is it supposed to be like that?”, he queried.

 

“It is not good for the government to keep depending on borrowing for the provision of public goods, thereby piling loans upon loans. The government should generate revenue from within through taxation. But in doing that, there must be accountability”. Prof Ndubuisi spoke on the topic: ‘Taxation and Public Service.’

 

For a better society

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