The Chartered Institute of Taxation of Nigeria (CITN) has said that the current tax reform bills before National Assembly are capable of transforming the tax space in Nigeria and addressing systemic challenges that have bedeviled the effectiveness of our tax system.
The President of CITN, Mr Samuel Agbeluyi who made this statement in his keynote address during press briefing / media workshop said that the reform will also help to engender an enabling environment for businesses to thrive.
According to him “taxation is such a critical subject that requires that we must lend ourselves to understanding the intricacies and complexities that characterize it, to better grasp the fiscal and societal implications of this important civic duty if it done right or otherwise.”
He highlighted some benefits of the tax reform in the country, adding that the institute welcomed the interest of stakeholders in the Bills as it is part of the process of ensuring that the provisions of the Bills are all encompassing.
At the institute level, he said “while we were participated at one level or the other in the process leading to the drafting of the Bills under reference, we still have some observations in the Bills which we will present at the Public Hearing on the Bills.”
He urged all those who have expressed concerns about certain aspects of the Bills to base their assertions on facts and figures and endeavour to make their suggestions and recommendations on specific provisions of concern for a more enriched document.
He said that with recent tax reform there would be a lot of relief on the tax payers.
Agbeluyi explained that though the current tax reform bills have passed through consultation in the six geographical zones of the country, there is still need to consult more people for better understanding.
He said “we need to have culture whereby people will have understanding on what taxation is all about
Expressing the need for Nigeria to have a unified tax system, he said taxation is one of major areas investors looked at before investing in any country, noting that no investors would like to invest in an economy with multiple tax system.
He, however, said that the introduction of enhancements to the TaxProMax system, by Federal Inland Revenue Services, which include the implementation of a Tax Wallet feature that allows taxpayers to make partial payments of outstanding liabilities was part of the government’s broader effort to make tax compliance easier and more flexible for businesses.
Meanwhile stakeholders in the nation financial system said that the tax reform bill must include proper attribution of tax to areas of collection before derivation as it will become a sort of extortion from some states especially those states in the South East while Lagos State would be at advantage
They believed that applying principles of tax attribution to areas of consumption in all states before derivation would be more beneficial to many states.
By the reform bills, 60 per cent of the VAT will go to the state of collection.
Delivery the welcome address at the workshop, Chairman of the Branding, Publicity, and Publications Committee,, Professor Godwin Oyedokun, acknowledged the vital role of the media in shaping public opinion and influencing tax policies.
He said this workshop serves as a platform for knowledge sharing, capacity building, and fostering a deeper understanding of taxation,” “We believe that informed reporting on tax matters is key to driving public awareness and accountability.”
