…As Tnubu justifies tax reforms 

Emma Ujah, Abuja Bureau Chief 

Vice President Kashim Shettima has said that following the series of reforms undertaking by the present administration, State Governments now have plenty of funds at their disposals.

This was contained in the address read on his behalf by the Special Adviser to the President on Economic Affairs in the Office of the Vice President, Dr. Tope Fashua, at the opening of the 27th Conference of the Chartered Institute of Taxation of Nigeria (CITN), today, in Abuja. 

The VP also disclosed that the State Governments have paid 32 percent of the global debt they owed.

His words, “The critical reforms of Mr President even extends to the matter of local government autonomy, and the earlier mentioned reforms led to a situation where our subnational governments are now awash with liquidity. 

Our states have paid down in just one year, 32% of their global debts. Many of our states have doubled and tripled their internally generated revenues in the same space of time. 

“Hardly does any of our states borrow for now, but with a repositioning of their balance sheets, we see an opportunity for states to leverage their good standing and combining their current liquidity, we hope to see an explosion of local and rural infrastructure all over Nigeria.

“We also hope to see immediate reduction in poverty across rural Nigeria, contrary to projections from some quarters. 

“This is because of the new Buy Nigeria policy, which compels governments across the country to consider local service providers first before anyone else, to use local contractors for public jobs, and to ensure that we use our own resources to reboot our economy from within. 

“Indeed, the first charge on the resources of our governments from federal to local, is the salaries and entitlements of our workers.”

Sen. Shettima called onnthe private sector to equally implement the Minimum Wage policy, to ameliorate the hardship facing low income earners

Also in a message, President Bola Tinubu has justified the ongoing tax reforms of his administration, saying they were imperative for sustainable development. 

President Tinunu who was represented by the Minister of State for Finance, Dr. Doris Uzoka-Anite, said, “I believe that a robust, transparent and fair tax system is essential not only for financing government operations but also for creating an environment of accountability, stability and long-term development. 

“Accordingly, the Government has taken deliberate steps to restructure and modernize our tax administration and legal framework.

“In this regard, the establishment of the Presidential Committee on Fiscal Policy and Tax Reforms marked a significant turning point. 

“The committee was tasked with simplifying the tax system, broadening the tax base, curbing leakages and ensuring alignment between fiscal policy and national development objectives. They worked tirelessly to achieve their mandates, which includes addressing issues of multiplicity of taxes and improving coordination between the federal, state and local government tax authorities.”

He said the reforms seek to harmonize tax collection processes, clarify tax laws and eliminate overlapping mandates that have historically created confusion and inefficiency. 

Furthermore, we are leveraging technology and data analytics to enhance tax compliance and improve service delivery.

“The digitization of tax processes is already yielding positive results and we remain committed to building a system where every taxpayer, whether an individual or corporate entity, can transact efficiently, transparently and with confidence in the system’s integrity,” the present said.

He urged the CITN to work to work with the Federal Government to build a tax system that supports enterprise, reduces poverty and delivers on national development agenda.

In his remarks, the CITN President, Mr. Samuel Agbeluyi, said the organisation has been at the forefront of excellence, ethical standards and professionalism in the tax profession for over 43 years. 

He said members were at the conference to critically examine the interconnectedness of taxation and fiscal development from the lens of policy, law and implementation with view to providing actionable policy recommendations for the consideration of government and stakeholders-alike.

The theme, of the conference is “Taxation for Development: Policy, Law and Implementation.” 

The president described taxation as “not merely a tool for revenue generation; it is a powerful instrument for promoting equity, redistributing wealth, incentivising growth and funding public services that enhance the quality of life for all citizens. 

He added, “However, for taxation to truly serve these developmental goals, the triad of policy formulation, legal framework and implementation mechanisms must be harmoniously aligned. 

“When policy is progressive, the law is enabling and implementation is both efficient and equitable, the result is a tax system that engenders trust, encourages voluntary compliance and delivers shared prosperity.

This is therefore, a thought provoking topic that requires all of us to put on our thinking hats. As we deliberate, we must recognise that our nation faces significant challenges. From economic to security and social dimensions, the need for sustainable solutions has never been more pressing than today. And at the heart of these solutions lies our tax system.

Mr. Agbeluyi urged the government to refine the provisions on the accreditation of Tax Agents as contained in Sections 32 and 143 of the Nigeria Tax Administration Bill, 2024, and the appointing authority in Section 5(n) of the Joint Revenue Board of Nigeria (Establishment) Bill, 2024, in order to strengthen and uphold the principles of professionalism and competence within nation’s tax system.

He urged the over 31,000 professionals under the membership of the CITN to show commitment and contribute meaningfully to the ongoing reforms.