By Chinyere Joel-Nwokeoma
Lagos – An economist, Prof. Sheriffdeen Tella has urged the Federal Government to explore new method of tax collection to boost the nation’s revenue generation drive.
Tella, of the Olabisi Onabanjo University, Ago-Iwoye, Ogun told the News Agency of Nigeria (NAN) in Lagos on Monday that there was the need for government to strengthen its tax collection mechanism for improved revenue generation. “To raise more revenue from taxes, government has to improve on efficiency and effectiveness of tax collection mechanism as well as introduce some new taxes like property tax, gift tax, luxury and inheritance taxes,’’ Tella said. According to him, efficiency and effectiveness has to do with how the personnel involved in tax collection are doing their work, the motivation and meeting of targets.
Tella said that government should employ tax experts to assist in providing tax framework for the nation. According to him, private firms personnel can be used temporarily and the amount collected used as bench mark for ministry workers when they take over tax collection. Tella claimed that many companies were in the habit of bribing tax collectors to avoid payment of appropriate tax, while others manipulate figures by declaring lower profits rather than the real profit. He noted that taxes apart from being used to raise funds for executing annual budgets, taxes were also used to achieve some other objectives including the control of consumption and production. NAN recalls that Mrs Kemi Adeosun, the Minister of Finance, recently revealed plans by the Federal Government to increase the tax paid on tobacco and alcohol.
Adeosun said that the idea was to raise revenue and decrease tobacco consumption in the country. (NAN)