LAGOS – The Chartered Institute of Taxation of Nigerian (CITN) on Thursday expressed serious reservations and concerns over the privatization of States and Local Governments revenue collections.
Mr Mac-Tony Dike, CITN President expressed the worries at the opening ceremony of Annual Tax Conference (ATC) organised by the institute in Abuja.
He said that while the Federal Government had banned the use of tax consultants, state and local governments had indulged deeply in the illegal business acts.
According to him, the continued usage of tax consultants impact negatively on the infrastructure and capacity of the Federal and States Revenue Agencies to carry out their statutory assignments.
He said that under the First Schedule of the Companies Income Tax Act and Section 88 of the Personal Income Tax Act (as amended) private tax contractors were allowed for non core tax responsibilities.
“This is very doubtful in practice as these private tax consultants/contractors are performing the exclusive core functions of the Revenue Authorities.
“What is even more worrisome and dangerous is the attempt in some states to privatise the revenue collection against all known conventions.
“In our march towards a country whose national development is anchored on taxation, this tendency is not only unsavoury but distasteful,” he said
[pro_ad_display_adzone id=”70560″]
On revenue diversification, he said, the imperatives global economic challenges had made it imperative for Nigeria to shift from over relying on oil in its drive for sustainable economic development.
“Following the massive decline in global oil prices and the damage it has done to the Nigerian economy and the 2015 budget, it is imperative now for the incoming administration to seriously explore other viable means of saving the economy from total collapse.
He said that recent decline in global oil prices resulted in the free fall of national revenue, pegging of the budget at 53 dollars per barrel and devaluation of Naira by the Central Bank of Nigeria (CBN).
“For the Nigerian economy that is largely import-driven and oil-dependent, this implies a serious revenue gap, increase in prices of goods and services and inflation,” he said.
He said that accurate and sustained taxation provided complementing funds to cover the cost of general administration, internal and external defence, maintenance of law and order and the provision of social services. (NAN)
you may also like:
