Taxes are mandatory contribution levied on individuals and corporate by a government entity. However, as mandatory, there must be due consideration in application of taxes and its enforcement mechanism that needs urgent attention and amendments. Many of the existing laws are outdated and require proper updates to harmonise and address multiple of taxation, reduce the burden on businesses, while minimizing the burden on the vulnerable population and addressing the concerns investors within the country.
The country’s revenue generation always falls below the African standards, yet our collecting costs are way above the highest. This is due not only to multiple taxation, but also numbers of collection agencies and fragmentally implemented revenue reporting procedures. Public willingness to pay taxes is strained because of a lack of trust in government, both among individuals and businesses, huge sizes. The burden of tax falls heavily on those who comply, while those who evade often get away with little /or and no consequences.
Our tax administration has improved but remains relatively basic, with instances of unregulated collections by untrained officers, particularly at the Local Government level, being widespread.
The process-of-resolving tax disputes is protracted with inadequate, mechanisms for many small businesses and vulnerable individuals to seek fair tax resolution, as professional services are often beyond their means.
Our revenue generation falls below even African standards, yet our collection costs are among the highest. This is due not only to multiple taxes but also numerous collection agencies and fragmented revenue reporting procedures. Public willingness to pay taxes is strained because of a lack of trust in government, both among individuals and businesses, irrespective of size. The burden of tax falls heavily on those who comply, while those who evade often get away with little or no consequences. We need to change this.
The process of resolving tax disputes is protracted and costly, with inadequate mechanisms for many small businesses and vulnerable individuals to seek fair tax resolution, as professional services are often beyond their means. Although these challenges may seem daunting, they also represent a unique opportunity for us to create a positive impact. We have the chance to revamp our tax policies for a more equitable system, modernize our laws to be adaptable and forward-looking, revitalize our revenue administration.
We must be committed to establishing a conducive policy environment to attract global businesses and position our nation as a hub for research and development, technology and innovation, headquarters location, financial and shared services center for the continent.
There will be need to unify the discussions and agree with major stakeholders. The state internal Revenue Services should be sole administrators of all revenue in their respective states and eliminate the idea of having multiple agencies of government involving themselves on revenue collection activities.
The Joint tax board, chaired by the chairman of the Federal Inland Revenue Service (FIRS); being the Chairman and having all the state chairmen of the internal revenue services as members and other sister agencies.
Musings Of The Iron Butterfly – Chapter 1