An overhaul of Nigeria’s tax system for the sake of the efficiency of the country’s finance management has been advised.
The overhaul was advised by the Civil Society Legislative Advocacy Centre (CISLAC) who noted that it will strengthen Nigeria’s tax administration system with the view to expanding the tax base of the country as well as expanding the revenue scope to bring more taxable people and businesses into the tax net.
According to CISLAC’s programme manager, Chinedu Bassey, who stated this at a one-day stakeholders media dialogue focused on policy gaps om fiscal transparency and alternatives under the Oxfam’s global strategic partnership programme on Thursday, July 9 in Abuja.
Bassey called on the government to implement progressive taxation and ensuring that rich persons and companies pay these taxes. Bassey also called for an increase in tax compliance by rich individuals, including payment of tax on offshore hidden properties.
He said governments at all levels should develop an inclusive public finance framework with a clear resource mobilization plan that looks beyond oil revenue.
According to him, the framework should make provision for the diversification of oil revenue beyond sales of crude and other accruable rent. While giving a presentation on effective public finance management roadmap in Nigeria, Bassey said for a nation to achieve sound economic performance, there is the need for strong public financial management as a means of realizing its aspirations and goal for good governance. He listed the factors responsible for the ineffectiveness of public finance in Nigeria as
1. Poor domestic resource mobilisation
2. Over dependency on oil revenue with a high level of market volatility
3. Low tax revenue
4. Corruption and leakages in the public procurement process
5. Weak public institutions
6. Obsolete laws and regulations
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