The Chartered Institute of Taxation of Nigeria, CITN says there is need for a new government that will emerge after the upcoming elections to address Revenue crisis in the country.
The Institute gave the advice when some tax practitioners spoke during the annual tax week put together by CITN Lagos and District Society.
The finance act as a physical tool to amend relevant tax laws that impact how businesses are carried out in Nigeria has continued to elicit concern amongst relevant stakeholders year-in year-out as the piece of legislation is said to be riddled with loopholes that are destructive to the operating environment.
Tax practitioners and economists who have converted at the 2023 annual tax week put together by the chartered Institute of taxation of Nigeria, Lagos and District Society highlighted the economic implications of increased talks during economic downturn.
The Executive Director (Nigeria|STP), AfDB, Dr. Oyebode Oyetunde, delivered a presentation titled ‘FGN’s 2023 budget: Thoughts on budgeting, taxing and transitioning’, he gave suggestions on how to solve the revenue challenge’.
He advocated for, “Increased VAT revenues predominantly to support our states and Local Governments’ precious finances during and after the impact of the COVID-19 Pandemic on the economy;
“Reducing headline corporate tax rates for Small and Medium-Sized Enterprises; Reforming archaic tax legislation in line with global best practices to combat base erosion and transfer pricing;
“Reforming the taxation of securities lending & real estate investment trusts to spur increased capital market investments; and Empowering the Federal Inland Revenue Service & the Nigeria Customs Service to optimise their use of technology to more efficiently collect taxes and levies.”
Speaking on the proposed amendments of the 2022 finance bill, they urged the president to critically review the proposal before assenting to it.
As the nation prepares for elections in few days, the next government will have to evaluate the existing tax regime in order to simplify it. further expand the tax base and explore new initiatives that will attract the much needed investment to stimulate the economy.
