Hard But Necessary Reforms, Needed To Grow Tax Revenues — Nami
By Patience Ikpeme
In order for Nigeria to achieve its maximum capacity for tax revenue collection at the federal, state, and local government levels, the country must undergo necessary and challenging reforms that will yield long-term benefits.
This viewpoint was expressed by Mr. Muhammad Nami, the Chairman of the Joint Tax Board (JTB) and Executive Chairman of the Federal Inland Revenue Service (FIRS), during the 153rd Meeting of the Board held in Abuja.
The meeting focused on the theme of harmonization and codification of taxes at the national and sub-national levels, with the goal of creating a tax-friendly environment in Nigeria.
Mr. Nami emphasized the importance of exploring and implementing measures and innovative initiatives that will optimize tax revenue for all levels of government.
He stressed that as tax administrators, they have a unique opportunity to make difficult decisions that will ultimately benefit the nation’s collective prosperity.
The significance of taxation in funding government and governance has been widely acknowledged, and it is crucial to continue progressing in the tax administration model by adopting more efficient, effective, inclusive, and sustainable approaches.
Mr. Nami assured the Executive Chairmen of State Revenue Authorities present that the current administration’s tax policy direction aims to eliminate multiple taxation, which is a core objective of the country’s overall economic regeneration.
Additionally, Mr. Taiwo Oyedele, Chairman of the Presidential Fiscal Policy & Tax Reforms Committee, highlighted in his presentation that multiple taxation diminishes tax morale, discourages investments, fosters corruption, and hampers business operations.
He emphasized that the solution to Nigeria’s revenue challenges lies not in introducing more taxes, but in focusing on high-yielding taxes to significantly increase collection.
Mr. Taiwo Oyedele proposed that the government should strive to reduce the number of taxes collected at all levels to single digits, clarify taxing rights, integrate tax collection functions under a single revenue agency, adequately fund tax agencies, harmonize revenue administration, simplify tax compliance, leverage technology, review tax laws and the constitution, and reconsider the concept of fiscal federalism in Nigeria.
