Post by Sapphire Capital on Aug 4, 2008 4:12:16 GMT 4
Monday, August 4, 2008
After about nearly three years of deliberation, the 9 -man Presidential Committee set up by the Federal Government in 2005 to study the recommendation of a Study Group on the review the Nigerian tax system and development of a National Tax Policy for the whole nation, last week flagged off a sensitization programme, meant to educate all stakeholders on the emerging draft document.
The sensitization workshop which is expected to cover the six geopolitical zones of the country, including Lagos and Abuja, is coming on the heels of the formal presentation of the draft recommendation to President Umaru Musa Yar’Adua, by the Presidential Committee after adopting the draft presentation by its technical committee.
Speaking at the occasion in Lagos last week, Chairman of the technical committee and the Executive Chairman of the Federal Inland Revenue Service, Ms Ifueko Omogui, stated that the National Tax Policy document, when adopted would provide direction on tax matters to all tiers of government, as well as direct its fiscal policies.
She explained that the document was not intended to distort the existing principle of federal federalism in the country, but designed to eliminate most of the bottlenecks currently constraining the nation’s tax system for more effectiveness.
According to the FIRS chairman, the National Tax Policy would also address in a more decisive manner, the menace of double taxation, focus on core areas of taxation and discontinue special purpose taxes at the Federal level.
She stated in addition, that the document will shift emphasis from direct (income) to indirect (consumption) taxes to achieve a higher level of equity in the country’s tax administration machinery.
Omogui said hinted that when approved for implementation, the policy would institutionalize tax waivers based on clearly defined criteria, particularly as it relates to sectors and not individuals.
Another key issue that the impending tax document would seek to achieve would be to place greater premium on non oil tax generation considering the unpredictability of oil revenue as a source of public finance by successive governments.
She noted that there was also the need to recognize the primacy of the Federal Ministry of Finance on tax policy, while the revenue authority is expected to continually provide input but not having the final say on policy direction.
The committee noted there was need for all stakeholders in the industry to make contributions at the various sensitization programmes that would be instrumental to the formulation of a final document in a way that ensures that generations unborn will reckon with the present exercise as one that has given a clear direction on the nation’s tax policy.
However, commenting on the sensitization programme, a council member of the Lagos Chamber of Commerce Chief Jacob Babalola Okello, frowned at the consequences of the nation’s poor tax administration policy on the private sector.
He regretted that several private companies have since gone extinct as a result of the heavy taxes imposed on them by various tax authorities, stressing there was need for the presidential committee to adequately streamline the nation’s tax laws to boost investment and to make existing businesses more competitive..
After about nearly three years of deliberation, the 9 -man Presidential Committee set up by the Federal Government in 2005 to study the recommendation of a Study Group on the review the Nigerian tax system and development of a National Tax Policy for the whole nation, last week flagged off a sensitization programme, meant to educate all stakeholders on the emerging draft document.
The sensitization workshop which is expected to cover the six geopolitical zones of the country, including Lagos and Abuja, is coming on the heels of the formal presentation of the draft recommendation to President Umaru Musa Yar’Adua, by the Presidential Committee after adopting the draft presentation by its technical committee.
Speaking at the occasion in Lagos last week, Chairman of the technical committee and the Executive Chairman of the Federal Inland Revenue Service, Ms Ifueko Omogui, stated that the National Tax Policy document, when adopted would provide direction on tax matters to all tiers of government, as well as direct its fiscal policies.
She explained that the document was not intended to distort the existing principle of federal federalism in the country, but designed to eliminate most of the bottlenecks currently constraining the nation’s tax system for more effectiveness.
According to the FIRS chairman, the National Tax Policy would also address in a more decisive manner, the menace of double taxation, focus on core areas of taxation and discontinue special purpose taxes at the Federal level.
She stated in addition, that the document will shift emphasis from direct (income) to indirect (consumption) taxes to achieve a higher level of equity in the country’s tax administration machinery.
Omogui said hinted that when approved for implementation, the policy would institutionalize tax waivers based on clearly defined criteria, particularly as it relates to sectors and not individuals.
Another key issue that the impending tax document would seek to achieve would be to place greater premium on non oil tax generation considering the unpredictability of oil revenue as a source of public finance by successive governments.
She noted that there was also the need to recognize the primacy of the Federal Ministry of Finance on tax policy, while the revenue authority is expected to continually provide input but not having the final say on policy direction.
The committee noted there was need for all stakeholders in the industry to make contributions at the various sensitization programmes that would be instrumental to the formulation of a final document in a way that ensures that generations unborn will reckon with the present exercise as one that has given a clear direction on the nation’s tax policy.
However, commenting on the sensitization programme, a council member of the Lagos Chamber of Commerce Chief Jacob Babalola Okello, frowned at the consequences of the nation’s poor tax administration policy on the private sector.
He regretted that several private companies have since gone extinct as a result of the heavy taxes imposed on them by various tax authorities, stressing there was need for the presidential committee to adequately streamline the nation’s tax laws to boost investment and to make existing businesses more competitive..