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Economy

Nigeria will not progress without taxation – CITN

Nigeria will not progress without taxation – CITN
Taxation
By Emmanuel Afonne
Abuja, Oct. 14, 2019 (NAN) Mrs Olajumoke Simplice, President, Chartered Institute of Taxation, Nigeria (CITN), has said that Nigeria will not progress without effective taxation system in place.
Simplice made this known at a Seminar on ‘’Current issues in Nigeria Taxation: VAT Act, Stamp duty, TIN and PTF’’, in Abuja on Tuesday.
“The Value added tax at five per cent cannot work; when it was promulgated in 1993, it was said that it will be reviewed over time; 25 years past, nothing has been done.
“In 2007, 2009 and 2019, attempts were made and there was a lot of noise around it. I think Nigerians just need to understand that we cannot progress without taxation.
“The days of oil revenue are completely over, we should be working on the issues of taxation,” she said.
She said that the 7.5 per cent VAT in the 2020 budget as part of revenue generation was laudable with the exemption of basic items from being taxed.
According to her, the items are the ones that affect the common man in the health sector, agriculture and others.
She added that micro and small enterprises with less than N25 million turnover was also exempted.
Simplice said that government must work out details on how to implement the VAT adding that the decision was a step in the right direction.
She further explained that Nigerians should equally understand that VAT remained a consumption tax that one can only pay when they consume goods applicable.
“If you sit down in your house and eat, you will not pay VAT, if you give your wife money to go to the market, you will not pay VAT but if you carry your wife to Sheraton to eat and sleep, you will pay.
“That is what we are saying, those things that are liable to VAT do not affect the masses and they need to understand that.
Nigerians need to understand that VAT is a consumption tax, If you do not consume Hennessy, Champaign and others, you will not pay,’’ she said.
Commenting on the seminar, she said that the major focus was to get people talk on various issues as it concerned VAT, Stamp duty Act among others.
She added that the seminar was part of the institute’s advocacy programme to support government policies and programmes.
“We organise this periodically to tackle issues and elicit people’s comment and possibly advise government on issues and policies,” she added.
Also, the Executive Secretary Joint Tax Board, Prof. Abiola Sani, said that effort must be made to educate Nigerians on the VAT.
He said that the proposed VAT of 7.5 per cent was not targeted at the ordinary Nigerians adding that government’s efforts to increase local revenue through VAT should be commended.
“We need to get people pay tax; the consumables that will affect the ordinary Nigerians have been removed from VAT.
“Stakeholders need to keep educating Nigerians to understand all issues concerning taxation in the country for economic growth and development,” he added. (NAN)
EMAF/NNO/DCU
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Edited by Nick Nicholas/Donald Ugwu

Metro

NLC moves to close inequality gaps, promote tax justice

Gaps
By Tosin Kolade
Abuja, July 18, 2019 (NAN) The Nigeria Labour Congress (NLC) has called on the Economic Community of West African States (ECOWAS) to implement policies and programmes to close widening inequality gaps in the region.

NLC Tax Justice Officer, Mr James Eustance, made this call while leading a Road Walk to the ECOWAS commission to create awareness on the recently released OXFAM report which revealed that “69 per cent of Nigerians were living below the poverty line’’.

According to the Oxfam Commitment to Reducing Inequality (CRI) Index, governments in West Africa are the least committed to reducing inequality on the continent.

The report noted that while a small but growing number of people were becoming rich in the sub-region, the vast majority were denied the most essential elements of a dignified life.

It noted that in spite of remarkable economic growth driven by extractive industries, access to quality education, healthcare and decent jobs, was low for majority of the population.

Eustance said that if the governments did not radically increase their commitment to reducing inequality, the crisis was likely to be worsened in the region.

“Governments must promote progressive taxation, boost social spending, strengthen labour market protection, invest in agriculture and strengthen land rights for smallholders.

“ECOWAS needs to prioritise tackling inequality and develop a regional action plan to drastically improve the region’s performance.”

He said Nigeria and its West African counterparts must do more to promote tax justice, saying the current trend of overburdening the poor was worrisome.

Eustance called for progressive tax laws which allowed payment of tax as one earns, noting that this current practice had made the rich become richer and poor becoming poorer.

He urged the Nigerian Government to protect Africa’s wealth through an effective tax regime that would provide a tax haven for some people.

“There must be tax justice that would make the rich to subsidise the poor and not the poor subsidising the rich as currently is the case, a situation where only the working class and the poor pay tax is unacceptable.”

The Director, Human Resource, ECOWAS, Mrs Amelia Kone, received the inequality report on behalf of the Head of the Commission and promised to relay every information to him.

She expressed optimism that he would act accordingly after studying the documents. (NAN)
TAK/GOM/IS
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Edited by Gregg Mmaduakolam/Ismail Abdulaziz

Health

NAFDAC advocates tax relief for local pharmaceutical companies

NAFDAC advocates tax relief for local pharmaceutical companies
By Mustapha Sumaila
Tax
Abuja, June 11, 2018 (NAN) The National Agency for Food and Drug Administration and Control (NAFDAC) has advocated for tax relief for local manufacturing pharmaceutical companies to guarantee quality and affordable drugs for Nigerians.
The Director-General of NAFDAC, Prof Moji Adeyeye, made the call while speaking with the News Agency of Nigeria (NAN) in Abuja on Monday.
Adeyeye explained that such relief would attract more investors into the pharmaceutical companies in the country.
“NAFDAC is currently working with the Ministry of Trade and Industry on the issue of tax relief for locally manufacturing pharmaceutical companies, and we are optimistic that they will oblige.
“About 80 per cent of materials currently use in the production of drugs are imported while only 20 per cent is sourced locally,” she said.
The director-general said that the development was unacceptable and her agency would do everything possible to change the trend.
She pledged to reverse the situation whereby 80 per cent of what is needed for production of drugs is sourced within the country and only 20 per cent will be imported.
“In doing this, it will also help us in achieving ease of doing business, one of the policies of the present administration to boost investment,’’ she said.
Meanwhile, Adeyeye has also announced plans to get enhanced salary structure for the staff of the agency to motivate them and boost the fight against illicit drugs.
She noted that NAFDAC members of staff are working hard to save the lives of Nigerians, but they are not well paid.
The NAFDAC boss decried the situation where workers of staff of the agency could not afford house rent in Abuja and Lagos, describing such as unacceptable to her and the agency.
“Though, the last strike by members of the agency was in solidarity with JOHESU and we use the opportunity to meet with the union to address the issues on welfare.
“And a lot has been achieved with the union, we have our plans, very soon we will get a new staff good salary structure,’’ she said. (NAN)
MS/KOLE/MST
Edited by Muhammad Suleiman Tola
Edited by Remi Koleoso/Muhammad Suleiman Tola

General news

Tax expert wants Nigerians to demand good governance

Tax expert want Nigerians to demand good governance

NAN-H-3

Governance

BY Olawunmi Ashafa

Lagos, April 17, 2017 (NAN) Mrs Morenike Babington-Ashaye, a former chairman of Ogun State Internal Revenue Service, has called on Nigerians to demand for accountability, transparency and good governance over the administration of the taxes they pay.

However, she said this could be achieved through regular public sensitisation that would help in enlightening citizens on the importance of participating in governance.

Babington-Ashaye said in an interview with the News Agency of Nigeria (NAN) on Sunday in Lagos that Nigerians needed to be more involved in governance than before.

The Founder, Accounting Education and Research Services (ACCERS), said that Nigerians should ensure that all structures, processes and
procedures that could engender good governance were put in place.

She also said that Nigeria as a country endowed with natural and human
resources had no business with poverty.

Babington-Ashaye said: “Nigeria as a country has no business with
poverty, and poverty has no business with Nigeria.

“We are blessed, so wonderfully blessed by God and with natural and human resources, we ought to be the envy of all nations.”

She said that no one had the right to waste or misuse taxpayer’s money
since government funds were people’s property.

The tax expert said that Nigerians’ constant involvement in the governance, tax process and procedures would make taxpayers be able to hold government accountable.

Babington-Ashaye said that the Nigerian constitution, which described as the highest authority, had not enjoyed wide-spread legitimacy which in turn had affected confidence in government.

She explained that in terms of the constitution and taxation,
structurally the constitution had created wastage in public
administration and duplication across the tiers of government.

According to her, estimates show that the running costs of government at the three tiers had taken up to 70 to 80 per cent of revenue at the disposal of government.

“As a result, due to the limited remaining funds, public amenities
such as the availability of potable water, good roads, functioning
schools and public hospitals are like luxuries.

“This in turn impacts negatively on society, as we see more and more
Nigerians unable to afford the necessities of life.”

She said that the provision of social welfare programmes aimed at the
eradication of poverty was also necessary and not an act of charity, but an obligation on the government.

Babington-Ashaye said transparency and accountability were two important words that play a role in building trust in government at all levels.

She noted that for several years, the government had been focused on
developing measures to increase the tax base and overall compliance
rate in the country.

Babington-Ashaye said: “It is imperative that information must be
accessible in a timely manner, and that revenue agencies are
independent and equipped to protect the tax system.

“How do you know whether someone is misusing your property if you are not checking on it?

“In other words, how can we as taxpayers hold government accountable
for the use of our money if we ourselves are disinterested, and not involved.”

She noted that governance, taxation and accountability were linked.

To this end, she said there would be a public lecture and
discussion programme with a focus on governance in Nigeria titled
“Taxation and the Society” to be organised by ACCERS.

NAN reports that the programme will take place on April 26, in Lagos.

The lecture will bring together industry experts, tax practitioners
and payers to brainstorm and discuss innovative research which
suggest ways that government can be more ‘businesslike’.

The programme will explore case studies from within Nigeria and across
the world to identify best practices which can be useful in the country. (NAN)
AWA/MST

Edited by Muhammad Suleiman Tola

Economy

KNSG moves to expand tax net, recruits 765 graduates into revenue service

NAN-HE-18

Tax

Kano, March 6, 2017(NAN) The ‎Kano State Government on Monday presented employment letters to 765 graduates recruited into its Internal Revenue Service.

Governor Abdullahi Ganduje, in an address to the new revenue officers, said that the recruitment was to expand the state’s tax net and boost its internal revenue base.

“`We expect an upsurge in our internal revenue; you must all get down to business so that your impact will be felt immediately,” he said.

The governor said that those recruited were carefully selected, based on merit, from across the 44 local governments of the state.

He challenged the beneficiaries to see their appointments as a call to service by living up to their responsibilities of plugging all leakages and ensuring a robust internal revenue purse.

Earlier, Alhaji Abdulkadir Dambo, Chairman, Kano Internal Revenue  Service, had commended the state government for empowering the youth through job creation.

He called on the new tax collectors to live up to expectations by ensuring that all taxes due to the state were paid and receipted

“Above all, you must be diligent, honest and remain above board so that the service will be proud of you,” he said.

One of the new officers, Aliyu Sadik, told NAN that the move by the state government was “very commendable”.

“I am very happy to be among those recruited. No doubt, we shall do our best to generate funds for the state government,” he said. (NAN)

MNT/ETS

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Edited by Ephraims Sheyin