By Providence Obuh
The former Minister of Finance, Dr. Kalu Idika Kalu has said that taxation with representation will improve individual allegiance to the state.
He stressed that providing a fair tax regime and representation will contribute to optimal growth and development by creating a most conducive environment and a higher overall investment.
Kalu, who spoke at the 6th Aelex annual lecture titled “ Taxation without representation “ said in order to address the inconsistency in government to productively, there is need to deploy revenue from tax collected from people to the benefit of the citizens and that the shortcomings of tax administration in Nigeria be addressed
Kalu, stressed that to examine the concept of taxation without representation is better to examine the structural and fundamental differences between developed and developing countries, adding that the factors responsible for various levels of divergence between taxation and perceived representation are corruption which obviously causes widespread mis-use of tax revenues to fund diverse interest other than those of the masses who suffer from inadequate representation in the effective utilisation of such public revenues.
According to Kalu, “ the only remedy for taxation without representation is improved governance, good governance in the public sector as well as in the private banking and private corporate sectors.
No taxation without representation strongly expresses the interest and desires of the people to be a part of their own governmentâ€
He noted that adequate tax structure must be put in place to encourage investment and other income generation, adding that over the past forty years the nation at the Federal, State and Local Government level have failed to productively utilise public revenues to the optimal benefits of the citizens by providing basic needs but rather the use of political power to tax levies, taxes, tariffs and other deductions are imposed by unrepresentative legislative systems throughout our federal system and the three tiers of government.
In the same vein, Senator Udoma Udo Udoma said taxation and representation are inseparable because taxation help promote democracy.
Udoma noted that, for accountability in governance, taxes should not be raised from federal revenue only.
“Unless there is a policy change in the nation we will always have problem, we cannot depend on Niger Delta and expect peace and tranquility, lets build competitive industry†he said.
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