By Nse Anthony-Uko
ABUJA (Sundiata Post) – Minister of Finance, Mrs Kemi Adeosun on Wednesday inaugurated a committee to review the National Tax policy, which was last modified in 2012.
At the ceremony, she said that despite the need to increase tax revenues especially in the light of dwindling resources, government would give taxation a human face.
Terms of reference of the committee include: review the National Tax Policy document; recommend a list of tax laws and regulations that need to be reviewed or amended; and make any other suggestions on the NTP to facilitate effective implementation of the document
Members will also recommend policy to ensure inter-agency cooperation between the Federal Inland Revenue Service (FIRS) and other revenue agencies toward enhancing the IGR of the Federal Government; expand the treaty network of Nigeria to include our major trading partners and review the existing Double Taxation Agreement and; ensure that tax laws are reviewed from time to time to minimise avoidable hardships to taxpayers.
Adeosun reiterated that “this administration is committed to diversifying the sources of government revenues away from oil.
“Oil is just 13% of our economy but accounts for 70% of government revenue. Our challenge is to ensure that the other 87% of economic activity makes its own contribution to government revenue.
“An effective tax system is key to this and such as system must be underpinned by an effective and appropriate tax policy.”
She, however, lamented that Nigeria has one of the lowest tax to GDP ratios in the world at just 5%.
“There is clearly a pressing need for an overhaul of our tax policy and this is a key function of the Ministry of Finance”, the minister explained.
Maintaining that businesses react to tax policy and government was determined to ensure that ours sends the right message that Nigeria is open for business and is encouraging businesses with a tax system that is easy to understand and comply with.
“Areas of our tax code and laws that are in need of review will be addressed as part of this exercise as will modalities for simplifying our processes and reducing the tax burden on small businesses”, she stated.
Adeosun said the introduction of the National Tax Policy in 2012, which contains a set of fundamental principles, which should serve as guide or barometer in determining what legislative and administrative action the tax system may require, built on the set of principles espoused by Adam Smith in his Wealth of Nations viz: Equity, Certainty, Convenience, and Administrative Efficiency.
Members of the committee include Adesina Adebayo, Taiwo Oyedele, Prof, Abiola Sanni, Olayemi Odume and others.
At the ceremony, she said that despite the need to increase tax revenues especially in the light of dwindling resources, government would give taxation a human face.
Terms of reference of the committee include: review the National Tax Policy document; recommend a list of tax laws and regulations that need to be reviewed or amended; and make any other suggestions on the NTP to facilitate effective implementation of the document
Members will also recommend policy to ensure inter-agency cooperation between the Federal Inland Revenue Service (FIRS) and other revenue agencies toward enhancing the IGR of the Federal Government; expand the treaty network of Nigeria to include our major trading partners and review the existing Double Taxation Agreement and; ensure that tax laws are reviewed from time to time to minimise avoidable hardships to taxpayers.
Adeosun reiterated that “this administration is committed to diversifying the sources of government revenues away from oil.
“Oil is just 13% of our economy but accounts for 70% of government revenue. Our challenge is to ensure that the other 87% of economic activity makes its own contribution to government revenue.
“An effective tax system is key to this and such as system must be underpinned by an effective and appropriate tax policy.”
She, however, lamented that Nigeria has one of the lowest tax to GDP ratios in the world at just 5%.
“There is clearly a pressing need for an overhaul of our tax policy and this is a key function of the Ministry of Finance”, the minister explained.
Maintaining that businesses react to tax policy and government was determined to ensure that ours sends the right message that Nigeria is open for business and is encouraging businesses with a tax system that is easy to understand and comply with.
“Areas of our tax code and laws that are in need of review will be addressed as part of this exercise as will modalities for simplifying our processes and reducing the tax burden on small businesses”, she stated.
Adeosun said the introduction of the National Tax Policy in 2012, which contains a set of fundamental principles, which should serve as guide or barometer in determining what legislative and administrative action the tax system may require, built on the set of principles espoused by Adam Smith in his Wealth of Nations viz: Equity, Certainty, Convenience, and Administrative Efficiency.
Members of the committee include Adesina Adebayo, Taiwo Oyedele, Prof, Abiola Sanni, Olayemi Odume and others.
