By Elizabeth Osayande

At the recent 27th Annual Tax Conference, ATC hosted by the Chartered Institute of Taxation of Nigeria, CITN in Abuja, experts emphasised the urgent need for an improved taxation system, asserting that such reforms could significantly enhance the quality of life for Nigerian citizens.

In his paper presentation tagged: “Taxation and Stakeholders Engagement: Ensuring Accountability, Transparency and Sustainable Practices, the Special Adviser to the President on Economic Affairs, Dr Tope Fasua, highlighted the pivotal role of taxation in fostering economic growth. “An understanding of the importance of taxation by citizens, alongside accountability and transparency from the government, is crucial for developing a vibrant and sustainable economy,” he stated.

Fasua outlined the fundamental principles of a successful taxation system, which include simplicity, fairness, and transparency. “A good tax system should ensure adequacy—enough revenue to provide essential services—and elasticity, meaning that taxes should be responsive to economic fluctuations,” he explained. “It is essential to minimize tax resistance and ensure that taxes are levied for specific purposes.”

He also urged stakeholders to collaborate in steering Nigeria towards a future of inclusive development and shared prosperity, aligning with the Renewed Hope vision outlined by the President. “Now is the time for a stakeholder approach that will help our great nation begin its march towards greater economic prosperity,” he concluded.

Echoing this sentiment, Principal Partner at Vantage Attorneys LP, Ade Ipaye, addressed the challenges of tax compliance in Nigeria. “Tax compliance is not merely about filing returns and paying taxes; it is also about the taxpayer fulfilling their obligations honestly and promptly,” he stated. He noted that compliance can often be voluntary, but is frequently influenced by the threat of rigorous audits and penalties. “Noncompliance significantly constrains government spending and limits governance capacity,” he added.

Ipaye proposed several measures to enhance compliance, reiterating the need for government initiatives that encourage voluntary tax adherence. “We must create an environment where citizens are both aware of their responsibilities and motivated to fulfill them,” he urged.

In discussion on “Tax Practice in Nigeria: Balancing Professionalism and Ethics,” the West Africa Tax Leader at Deloitte, Yomi Olugbenro, stressed the importance of maintaining high ethical standards within the tax profession. “The current tax practice environment requires a concerted effort to drive professionalism and ethics,” he noted. “Tax practitioners are key stakeholders in achieving an improved tax system. Those who uphold professional and ethical standards will thrive, regardless of market conditions.”

“The Chartered Institute of Taxation of Nigeria is committed to fostering an environment of high ethical standards,” Olugbenro emphasized. “With an effective tax regime, everyone stands to benefit.”