The Chartered Institute of Taxation of Nigeria (CITN) has advised the Federal Government to reconsider granting tax holidays and incentives based on political patronage, as it may not benefit the country’s Economy in the long run. According to CITN President, Mr. Samuel Agbeluyi, this Revenue is the most sustainable source of financing government activities, and successful economies rely on taxes rather than natural resources. Agbeluyi emphasized that Tax Collection must be utilized wisely to improve citizens’ trust in paying taxes voluntarily.
He noted that these holidays and incentives can be beneficial if strategically implemented, but abuse of such incentives can have adverse effects on the economy. “Taxation is not just about payment; it’s a tool for wealth distribution and economic control,” he said. The CITN president explained that Tax Holidays can be beneficial for strategically important companies that contribute to the country’s developmental programs. However, he warned against granting incentives based on political patronage, as it can lead to abuse and have negative consequences on the economy.
Investors should be partnered with to boost economy.
Instead, authorities should identify areas in need of development and determine if resources are available or needed. Investors willing to invest in these areas with high capital expenditure requirements may benefit from these holidays, which can boost Economic Growth during their Tax exemption period. “After all, once their tax holiday period ends, they will return stronger than before and pay taxes, while simultaneously boosting economic growth during their time off from paying taxes,” Agbeluyi said.
Also, he commended President Bola Tinubu for prioritizing Taxation and taking steps to prevent excessive multiplication of taxes. “We believe that the president will revolutionize the country’s tax system once political leaders in the executive, legislative, and Judiciary branches support it,” he said. The 2024 CITN conference aims to bring together stakeholders to discuss unresolved challenges and find win-win solutions for Nigeria’s taxation system. Expected attendees include government officials, industry experts, and policymakers involved in public Finance management.
Nigerians should be educated about their obligations.
Themed “Sustainable Tax Culture and Economic Roadmap for Nation Building,” the conference will take place at the Abuja Chambers of Commerce and Industry from May 13 to 17. Agbeluyi expressed hope that the conference will provide a platform for stakeholders to discuss challenges facing the taxation system and find solutions to improve tax compliance and revenue generation. “We need to work together to create a sustainable tax culture that benefits all Nigerians,” he said. The CITN president also emphasized the importance of tax Education and awareness.
According to him, many Nigerians are not aware of their obligations and the benefits of paying taxes. “We need to educate taxpayers on the importance of taxation and how it contributes to the development of our country,” he said. In addition, Agbeluyi called for a review of the country’s tax laws and regulations to ensure they are fair, efficient, and effective. “Our tax laws and regulations need to be reviewed to ensure they are in line with international best practices and promote economic growth,” he said.
Related Article: Local firms tax payments to FG decline by 15%
To sum up, the CITN also recommended that the government should prioritize Tax Revenue collection and utilization, ensuring that every penny collected is used for the benefit of citizens. “Tax revenue is the most sustainable source of financing government activities, and we need to utilize it wisely to improve citizens’ trust in paying taxes voluntarily,” Agbeluyi said. The institute also calls for more education and awareness. By working together, Nigeria can create a sustainable tax culture that promotes economic growth and development for all citizens.
Related Link
TheCable: Website https://www.thecable.ng/nipc-dangote-mikano-105-companies-benefiting-from-fgs-tax-holiday/amp/