Mr Samuel Agbeluyi, the President of the Chartered Institute of Taxation Nigeria, stated that the Presidential Committee on Fiscal Policy and Tax Reforms full-year report shows that certain governors are already streamlining the different taxes they collect within their states, signalling the end of multiple tax systems.
Agbeluyi declared this at the Pre-Conference press briefing for the 26th Annual Tax Conference themed ‘Sustainable Tax Culture and Economic Roadmap for Nation Building’ to be held in Abuja next month.
“The 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,” he said.
A proposal put forth by the committee of which he is also a member, Agbeluyi emphasized that the tax space can be cleaned up through the harmonisation of taxes.
He called on state and local government chairmen to instruct non-state actors, noting, “There 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.”
“We commend the customer-focused strategy of the new Federal Inland Revenue Service, as this approach is followed globally. The sub-nationals don’t need to tax people into poverty, especially people that earn very low,” he added.
He suggests that governments should establish partnerships with wealthy individuals, courteously engage them, shows gratitude, and enhance revenue collection from them. This approach aligns with international standards and practices.
“Let us refrain from taxing poverty. I have confidence that individuals at the sub-national levels are listening to this advice,” Agbeluyi stated.
He advocated for sub-national governments to empower the State Inland Revenue Service with autonomy to boost their efficiency and effectiveness in tax collection.
“An 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,” he added.
“We must shift our focus from solely concentrating on the federal government to also paying attention to the sub-national entities,” he emphasised.
“Nigeria’s growth cannot be achieved by solely concentrating on the federal government,” Agbeluyi stated.
