The Chartered Institute of Taxation of Nigeria (CITN), has called for a well-structured incentive design, implementation and monitoring mechanism of the National Tax Policy (NTP).
It argued that there are good prospects and many benefits that could be derived from tax incentives if properly implemented and monitored for Nigeria to achieve its aim of export expansion and infrastructural development.
The reviewed National Tax Policy (NTP), CITN maintained, has been adjudged as the best for its robustness, simplicity, conciseness, less ambiguities, equity and its dispute resolution mechanism, which seemed to guarantee the ease of doing business in Nigeria.
A revised national tax policy (NTP) was approved by the Federal Executive Council on February 1, 2017, with a deliberate effort towards entrenching a robust and efficient tax system as well as the need to increase Nigeria’s non-oil tax-revenue-to-GDP ratio.
Speaking virtually on, “Tax Incentive and Revenue Generation in Nigeria,” during the 2020 Mandatory Professional Training Programmes (MPTP), Benin Zone, one of the facilitators, Felix Ahonsi, said if properly implemented, it would contribute significantly to the drive for foreign investment and diversification as well as increase taxpayers’ compliance.He said the experience learnt from other countries should be given proper analysis and possible application in the nation’s economic development.
However, one critical concern, he mentioned, was that the government has not been able to make public in a transparent manner the cost of the incentives it grants and the corresponding benefits achieved from such tax incentives.
Ahonsi said: “This might be attributable to the complex nature of the tax incentive framework. The intentions of the government are not ill-conceived, but the quality of its decision may not be in the correct mix.”
In her remarks, President and Chairman of Council, CITN, Gladys Simplice, commended participants on their desire to be better tax professionals.
Considering the importance that the Institute accords capacity development programmes for its members and non-members alike, she said they had to devise the means by embracing the new normal posed by COVID-19 pandemic towards bridging the reduction in capacity building programmes and to hold training virtually.
She urged the participants to utilise the platform towards updating themselves on recent developments across various specialisations in the field of taxation.