Summit Engenders Equitable Tax System in Nigeria.
The Former Director Tax Policy and Legislation, Federal Inland Revenue Service FIRS, Dr Mac Anthony Dike has attributed increasing tax evasion by Nigerians to misuse and embezzlement of public funds by public office holders.
He made the assertion while presenting a paper titled "The Evolving Tax System That Addresses Poverty and Inequality in Nigeria" at a One Day National Tax Summit by the Civil Society Legislative Advocacy Centre (CISLAC) in conjunction with the Tax Justice and Governance Platform in Abuja.
He said Nigerian Leaders see themselves as Emperors and as such evade tax therefore discouraging people from being truthful in tax paying.
According to him "tax is a compulsory levy by the sovereign state and authority on the citizens in order to boost the resources and grandeur of key sectors. Unfortunately the kind of perception and mindset that is still driving our modern day's leaders who sees themselves as the emperor rather than the servant of those who should die for the people and then show example in the way they lead. Tax is the vain, arteries of the body, if taxation is seen as the life blood of the state then tax should be properly imposed, because tax is the price we paid for a civilized society".
Speaking earlier, Director, CISLAC Auwal Rafsanjani who was represented by Senior Program Officer, Kolawole Banwo
spoke on the need for an equitable tax system.
"All the various tax laws that make up and comprise our system for generating tax, how equitable are they? Are there cases of multiple taxation that are killing industries, that are in-effective to investment especially from entrepreneurs? Are there those that are harsh towards our market women, our artisans? Are there those that still mount road blocks and oppressed people on the road and extract one thing or the other? How do we ensure that we generate resources in an equitable manner, that addresses the concerns of the poor, the disadvantage group and the marginalized of our under represented group?. He queried.
He recalled that the FIRS had been in the process of introducing a pre-emptying tax regime to tax the informal sector, adding that the need to enlighten Nigerians informed the summit.
In address, President, Trade Union Congress of Nigeria (TUC) kicked against , Comrade Bobboi Bala Kaigama recommendations to increase VAT from 5% to 10% warning that if otherwise, the union will seek redress for the right of Nigerian workers.
He decried corruption in the tax justice system, and wondered why most companies in Nigeria do not pay tax.
In his words "the people that are paying taxes in the country is the working class, because VAT is collected from their salaries as service charge and still goes to the market another VAT still come in. Only 20% of the almost 150,000 registered companies pay tax and while most Nigerians are paying two taxes yet you want to increase the tax. Don't mention the increase of VAT from 5% to 10% if not that is when you will know the power of labour and we will call for the right of Nigerian workers".
He maintained that Nigerians cannot be law abiding when they pay tax and yet to not get the services they pay for.
Meanwhile, Spokesman for Kano State Board Internal Revenue Mallam Mamuda Mohammed Kwajle advocated political will from the ruling class to improve tax generation.
According to him, "The whole Kano state has a total revenue of almost N6 billion but there is alot of interference from outside, so with this interference I don't think we can be able to perform well as public servants, we have a limit. We cannot say much on paper, media or what have you.
The second problem is that our salaries is the same with other core ministry workers, for the past 6 years we have not received any incentives or anything above our salaries and we have been praying to come to this type of gathering".
The Chairman, Bauchi State Internal Revenue Board, Yakubu Isa, Yusuf Adamu (ICAN), various NGOs and professional bodies were all in attendance