By Emmanuel Elebeke

The Association of Concerned Citizens of Nigeria on Revenue and Economy (ACCNRE) has lamented the continued operation of  the 1939 tax law, saying that the country cannot develop with an outdated law.

It called on federal government to embark on immediate restructuring of our tax administration by having the  tax collector (FIRS) and Independent Tax Auditors and Investigators Commission to operate side by side for transparent and efficient tax collection. 

The group said a restructured tax system will engender a transparency and accountability in the system and also encourage voluntary payment from the public.

The national Coordinator of Association of Concerned Citizens of Nigeria on Revenue and Economy, ACCNRE, Chief Philip Orji made the call while briefing newsmen in Abuja on Friday.

He stressed the need for a modernized tax system in Nigeria  given that the country still operates its outdated 1939 taxation law that negates the global best practice.

He therefore appealed to the National Assembly, particularly the House of Representatives to expedite action on the passage of the National Inspector-General for Tax Crimes Commission Bill, 2019 to instill efficiency in the tax system.

The bill which is sponsored by Hon. Benjamin Kalu (APC, Abia) is titled “the National Inspector-General for Tax Crimes Commission to promote economic efficiency and effectiveness on administering the nation’s tax system, detect and deter fraud and abuse in taxation programme and operations and to protect tax payer’s rights and for related matters, 2019”

The ACCNRE Coordinator, while calling for the prompt passage of the bill  said most people don’t pay tax in Nigeria because of lack of confidence in the system but assured that the only way government can win back the confidence of tax payers  is by entrenching a transparent and open tax system.

Chief Orji, who praised the former military president, Ibrahim Babangida  for establishing the Federal Inland Revenue Service (FIRS) lamented that the civilian administrations have not made conscious efforts to build on his success, adding that Nigeria has no option than to join the league of other countries like Ghana, Kenya, South Africa and Uganda in adopting world best practices in tax administration.

He said: “What our leaders can do to win the confidence of the citizens is to adopt transparent tax system.  We should join other countries of the world to boost our taxation for efficiency, transparency and accountability.

‘‘So many African countries have joined the global best practice and Nigeria cannot afford to be be left out. There is no politics when it comes to taxation.’’

According to him, “The FIRS and VAT is a modern methodology of taxation. But if you plant a tree and you do not water it, the tree will surely die. The world is about innovation that will mitigate the global modern technology”

‘‘The FIRS is made judge in its own case and this should not be. Any country that refuses to innovate will lose.

‘‘Our legislatures should know that our few enemies are winning some of our people’s loyalty because of the lack  and poor economy, which can be mitigated through a well restructured proactive tax system.

‘‘Our MPs must be told that in the course of our visit to all the six geo-political zones   of the country, we were able to found out  that our people are no longer  comfortable on whoever is going to be  the next president come 2023 because they do not have confidence in the system.

Our outdated method of taxation is no longer obtainable in the world and the risk posed by Electronic Service Delivery  has proven that countries no longer have luxury to operate  in isolation, so any country that fails to innovate will benefits in taxes  like  the transfer pricing. The passage of the bill in the NASS will rekindle the  our  people lost confidence in our government.’’

On why the Nigerian Labour Congress (NLC) should join hands with CCNRE, Chief Orji  said ‘‘it is laughable to think that criminality  takes place only with the workers, said the Commission when established  would make tax cheap, noting that enforcement of tax is expensive while voluntary payment makes it cheap.

He called on the Ayuba Wabba led NLC to join the crusade for the passage of the bill, stressing that workers stand to benefit more with a restructured taxation system.

He equally appealed to the media to join hands with the group to ensure speedy passage of the bill.