Mr. Samuel Agbeluyi, the president of the Chartered Institute of Taxation of Nigeria (CITN), has advised the Federal Government against granting tax holidays to people based on political patronage, as it would not be advantageous to the country’s economy.
Agbeluyi made this statement during a press conference ahead of the institute’s 26th annual tax conference, which will take place at Abuja Chambers of Commerce and Industry between May 13 and 17, theme: ‘Sustainable Tax Culture And Economic Roadmap For Nation Building.’
According to the CITN president, tax revenue is the most sustainable method for financing government activities and successful economies worldwide rely on taxes rather than natural resources, as it provides a stable source of income.
He emphasised that collection of tax revenue from taxpayers without using it wisely weakens the system.
To enhance the system, every penny collected must be utilised for citizens’ benefit to improve their trust in paying taxes voluntarily.
Speaking on tax holidays as a means of encouraging business in the country, Agbeluyi explained that tax incentives serve as a reminder that taxation is not just about payment; rather, it is a tool used for wealth distribution or economic control in specific ways.
To him, “Another aspect of taxation involves providing tax holiday windows to strategically important companies that contribute to the developmental programme in the country.
“However, abuse of such incentives should be avoided at all costs since giving out tax incentives based on political patronage can have adverse effects on the economy. Instead, authorities must look into areas where development is needed and determine if they have resources available or needed.”
Investors, he said, are willing to come in and show interest in improving these areas through business ventures with high capital expenditure requirements, then offering them relief via tax holidays may be beneficial overall, adding that, ‘after all, once their period ends they will return stronger than before and pay taxes while simultaneously boosting economic growth during their time off from paying taxes.’
Noting that president Bola Tinubu has made taxation a priority by taking steps to prevent excessive multiplication of taxes, Agbeluyi said, CITN believes that the president “will revolutionise the country’s tax system once political leaders in the executive, legislative, and judiciary branches support it.
Speaking at the 2024 CITN conference, Agbeluyi said it will bring together relevant stakeholders who can discuss challenges that remain unresolved but could potentially resolve issues at higher levels leading towards win-win situations for Nigeria’s taxation system overall.
Expected attendees include former Governor of Ogun State, Senator Ibikunle Amosu along with Jigawa State governor, Malam Umar Namadi, and Plateau State governor, Caleb Mutfwang, former executive chairman of the Federal Inland Revenue Service (FIRS), Babatunde Fowler, expected to attend alongside various industry experts, policymakers involved in Nigerian public finance management… [Source: Leadership]
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