The President of the Chartered Institute of Taxation Nigeria, Samuel Agbeluyi, said that ahead of the Presidential Committee on Fiscal Policy and Tax Reforms full-year report, certain governors are already streamlining the different taxes they collect within their states, signalling the end of multiple tax systems.
Agbeluyi said this at the Pre-Conference press briefing for the 26th Annual Tax Conference themed โSustainable Tax Culture and Economic Roadmap for Nation Buildingโ to be held in Abuja next month.
โThe presidential tax committee, under the leadership of Taiwo Oyedele, has helped some states in reducing their tax collections from 65 to 10, thereby bringing sanity within the tax system,โ he said.
Agbeluyi pointed out that the tax space can be cleaned up through the harmonisation of taxes, a proposal put forth by the committee of which he is also a member.
He urged the state and local government chairmen to instruct non-state actors, stating, โThere is no civilised society globally that tolerates road blockades. In regions where roads are still blocked and unaffiliated groups are collecting taxes, we must cease this practice. Taxpayers hold a position of importance and deserve respect. By treating them with reverence, they are likely to cooperate willingly.โ
โWe commend the customer-focused strategy of the new Federal Inland Revenue Service, as this approach is followed globally. The sub-nationals donโt need to tax people into poverty, especially people that earn very low,โ he added.
He advised that governments should establish partnerships with wealthy individuals, courteously engage them, express gratitude, and enhance revenue collection from them. This approach aligns with international standards and practices.
โLet us refrain from taxing poverty. I have confidence that individuals at the sub-national levels are listening to this advice,โ Agbeluyi stated.
According to him, the institute is currently training some workers at the state internal revenue on how to track and generate income and also profiling Nigerians, especially the people who engage in spending sprees and flaunt their money on social media.
He advocated for sub-national governments to empower the State Inland Revenue Service with autonomy to boost their efficiency and effectiveness in tax collection.
โAn independent State Internal Revenue Service should operate independently from the State Ministry of Finance, and states that have adopted this model have seen positive results,โ he added.
โWe must shift our focus from solely concentrating on the federal government to also paying attention to the sub-national entities,โ he emphasised.
โNigeriaโs growth cannot be achieved by solely concentrating on the federal government,โ Agbeluyi stated.