Tax revenue enhances sustainable devt, says CITN President

[MrVan]

By BABAJIDE KOMOLAFE

Revenues from taxes allow government to make long-term and sustainable planning than earnings from oil, said John Jegede,  President,  the Chartered Institute of Taxation of Nigeria (CITN).

Speaking ahead of the 14th Annual Tax Conference scheduled for next week in Abuja, with the theme: 'Taxation as a tool for Economic Transformation', he advised government to think of viable means of generating resources from taxation, as such allows for systematic planning more than oil revenue.

Jegede said that price of crude oil is not predictable, and such can cause distortions in government fiscal policy implementation. He advised government to use the opportunity presented by the conference, which President Goodluck Jonathan will declare open, to parley with tax experts and other stakeholders on way forward for the Nigerian tax system.

Jegede explained that more than earning from oil, effective taxation is germane in driving key sectors of the economy to substantial growth and development.

He, however, admitted that government is now taking keen interest in taxation as it is needed to drive its revenue base and bring meaningful development to the people.

The CITN boss said that the Personal Income Tax (Amendment) Act, 2011 has given more opportunities for tax professionals to key into the transformation agenda of the present government. He said that from the outset, the Act was enacted to ensure that personal income tax was administered equitably and that its major provisions reflected the focus of the overall tax reforms, although there are still areas yearning for further amendment.

He said the tax reforms included introducing a more equitable tax system by introduction of realistic tax rates, efficient and effective tax administration system, simplification of laws, empowering tax authorities and a shift from direct to indirect taxation by lowering of direct tax rates.

Vanguard Nigeria