Business

Nami: Nigeria needs reforms to ramp up tax revenues

The Chairman of the Joint Tax Board (JTB), Muhammad Nami, says Nigeria must make hard but necessary reforms that would yield long term benefits for the country to attain optimum tax revenue collection capacity across tax authorities.

Nami, who is also the Executive Chairman of the Federal Inland Revenue Service (FIRS), said this at the 153rd meeting of the JTB in Abuja on Monday, August 7, 2023.

The board chairman stated that for progress to be made in taxation, tax authorities must continue to explore and adopt measures and innovative initiatives that will lead to the optimisation of tax revenue for all levels of government.

He said: “As the new administrations attempt to address the many socioeconomic challenges facing the nation on many fronts, it becomes imperative for all the levers of State to shake-off any lethargic antecedents and focus on the goal of a national resurgence.

“The unique and privileged offices we occupy as drivers of the nation’s tax administration processes presents us with a rare opportunity to take hard, but necessary decisions that are expected to yield long term benefits and add immense value to our collective prosperity as a nation.

“In recent years, especially since the dawn of our current democratic dispensation, the importance of taxation has continued to be reiterated and reinforced by all, and the critical role that tax-revenue plays in funding government and governance cannot be over-emphasized.

“However, as we continue to make progress in our unique model of taxation, it is appropriate that we continue to explore and adopt measures and innovative initiatives that will lead to the optimization of tax revenue for all the levels of government, in more efficient, more effective, more inclusive, and more sustainable ways.

“It is only by achieving this, that our efforts as tax administrators can trigger the manner of activity required in the productive sectors of our economy, towards achieving the immense economic potentials that we are capable of.”

The FIRS boss further assured Executive Chairmen of State Revenue Authorities present that given the thrust of the current administration’s tax policy direction, the country was on the pathway to eradicating multiplicity of taxes as a core of its overall economic regeneration objectives.

Also speaking at the event, the Chairman, Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, said multiple taxation was causing low tax morale in the country, as well as discouraging investments, while creating room for corruption and making doing business difficult.

Oyedele noted that the solution to the country’s revenue challenges is not to introduce more taxes, but to focus on the few taxes that are high yielding, noting that with these, tax authorities would be able to collect far more than is currently being collected.

He stated that for the government to raise more revenue, it needed to get to a point where the total number of taxes collected at the federal, state, and local government levels would be at a single digit.

The Star