The Chartered Institute of Taxation of Nigeria (CITN) has advised the government to consider the negative impact of new taxes on businesses in its quest to increase revenues.
The 15th President of the CITN, Mr Adesina Adedayo, gave the advice during the 45th induction ceremony of the institute in Lagos, recently.
He said, “At governmental level, it is important that tax policy initiatives and tax law reviews are well thought out and followed through. We have consciously seen government’s efforts in the amendment of our tax laws through the Finance Act, 2019 followed by the Finance Act, 2020.
“Government must avoid the propensity to introduce earmarked taxes with the intention of raising revenues while neglecting the impact that such action would have on businesses and economic activities.
“As a matter of fact, the thinking of Section 2.2.6 of the Revised National Tax Policy 2017 is that our ‘taxes should be few in number, broad-based and high revenue-yielding’. In effect, the administration of the taxes should be simplified for ease of enforcement and compliance”.
The CITN president noted that taxation had been on the front burner and would continue to be because of the economic fallout of the Covu-19 pandemic.
“This has no doubt turned the global economy into recession in 2020, Nigeria inclusive, whereby taxation as one of the fiscal policy instruments is needed for stability in the post-pandemic era” he said.
During the award night organised as part of the programme, the institute gave merit awards to some individuals and corporate organisations that had made remarkable contributions to the development of the tax profession, the institute and the nation.
Adedayo commended the strides made by the Federal Government and tax authorities on fiscal policy decisions and tax administration measures initiated in the course of the year, in the area of Finance Act 2021, the Petroleum Industry Act and the introduction of TaxPromax solution.
“We align with these measures and will not relent as an institute to provide our professional thoughts and insights on ways through which we can achieve an efficient and effective Nigeria tax system”, he said.