Taxing -In the face of economic challenges, Nigeria’s Federal Government is intensifying efforts to boost revenue through taxation. The Accountant-General of the Federation, Oluwatoyin Madein, underscored the significance of tax revenue, highlighting its status as the highest income source for the federation. Madein revealed that tax revenue has become crucial for funding government operations, with the Federation Accounts Allocation Committee eagerly awaiting figures from the Federal Inland Revenue Service (FIRS) each month.
The FIRS surpassed its 2023 revenue target by a significant margin, indicating a positive trend in revenue generation. Amina Ado, Coordinating Director of Special Tax Operations Group at the FIRS, presented that the total actual revenue collection for 2023 was N12.37 trillion, surpassing the N11.56 trillion target.
At the 26th Annual Tax Conference of the Chartered Institute of Taxation of Nigeria, the Accountant-General urged tax practitioners to increase their efforts in tax collection to enhance government revenue for infrastructure and other amenities. She emphasized the need for continued collaboration and capacity building among professionals, experts, and taxpayers to improve understanding of tax laws and regulations.
Despite these efforts, challenges remain. The withdrawal of subsidies on fuel and electricity has reduced the purchasing power of the masses. Samuel Agbeluyi, President/Chairman of Council, CITN, expressed concerns over the impact of these policies on the citizens and urged the government to consider their effects.
In a positive development, President Bola Tinubu requested the Central Bank of Nigeria (CBN) to suspend the implementation of the cybersecurity levy, following a directive from the House of Representatives. This decision reflects the government’s responsiveness to public concerns and the need for careful consideration of policies affecting the citizens.
Building a sustainable tax culture requires concerted efforts at all levels of government. Agbeluyi emphasized the importance of professionalism in taxation and the judicious use of tax revenue to build trust between the government and taxpayers. He also highlighted the need for investment in technology and human resources to track revenues in the digital space effectively.
In conclusion, Nigeria’s focus on tax revenue generation is a step in the right direction towards economic sustainability. However, there is a need for a balanced approach that considers the welfare of the citizens while ensuring adequate revenue generation for government operations.
