The Tertiary Education Trust Fund (TETfund) argues that in order to advance tertiary education in Nigeria, there is a need to increase education tax collections, which is why it has called for a further increase of the education tax rate to 3%. This further underlines the recent results achieved through intervention programs, according to Mr. Sonny Echono, Executive Secretary of TETfund, who was speaking on Tuesday in Lagos at the agency’s interactive forum with the Federal Inland Revenue Service (FIRS).
With the forum’s focus being on increasing education tax revenue for the development and advancement of tertiary education in Nigeria, he claims that these intervention projects and programs are carried out by the fund in Beneficiary Institutions (BIs). This, according to Mr. Echono, had both justified and deserved the need for further increases in the school tax rate to 3%. He added that it was also consistent with the objectives of various economies, as expressed by several experts.
Taxes play a pivotal role in the nation’s educational system.
This is true not just for Nigeria but for the majority of Africa as well, where governments were already having trouble collecting enough tax money prior to the outbreak, according to what they were cited as saying by the speaker. Mr. Echono maintained that it is imperative to increase “Education Tax (EDT) Collection,” particularly at this difficult economic time. He claims that this is due to the Fund’s use of it and the crucial part it plays in the country’s educational system. He claimed that it was just one of the many important factors that made the interactive forum essential to the fund’s overall operations.
Tax receipts directly correlate with income and, consequently, with the expansion of any healthy economic system. Therefore, the issue of education tax growth, which is central to TETFund’s vision and goal for the country’s education, is always at the top of the agenda. So, it’s no accident that the main topic of discussion at this year’s event is how to encourage, enhance, and sustain the collection of education taxes by all parties.
There would be transparency and accountability to government.
He claims that in his capacity as the executive secretary and accounting officer of the fund (Education Tax), he is dedicated to making sure that it is used wisely and in accordance with the TETFund’s act and mandate. Additionally, he promised to uphold accountability to the government and openness. Echono promised to uphold the agency’s stakeholders, including the FIRS, as well as accountability and openness to the general public. According to the head of TETfund, the agency collected N189 billion in education taxes in 2021, which is N16 billion less than it did the year before. He claimed that this constituted a significant obstacle to the fund’s intervention efforts in 2022.
In order to ensure that everyone pays their fair share of taxes, Echono said it was crucial to continually launch and maintain proactive measures like auditing. He claimed that previous trends and publications on the tax gap had shown that low audit rates were a significant barrier to revenue generation, particularly in the collection of school taxes. Echono expressed confidence that the meeting would provide them the chance to examine the problems and a wide range of additional choices and opportunities for increasing education tax collection.
The theme of the forum synergies with the vision of the Service.
This year’s forum, according to Muhammad Nami, Executive Chairman of the FIRS, aligns with the Service’s goal of making taxation the centre of national development. Mr. Abubakar Sadiq Mohammed, Director/State Coordinator, Lagos Mainland East of the FIRS, represented Nami. He praised the TETfund management and board of trustees for their perseverance in organizing the discussion. According to Nami, it acted as a platform for accountability to the many stakeholders. He asserts that there has never been a period when citizens have demanded responsibility and openness from government institutions, especially during this election year.
Related Link
TET: Website
