A lot has happened in respect to the tax reforms in Nigeria, and we ask ourselves, are we better of than where we were many years ago?
Looking at the reforms that have happened to Nigeria tax, from enhancing the collection of tax to implementing better administration with reduced administrative cost, how well have we really fared?
Looking at the various tax reforms like the recent unification of tax identification number by the FIRS, automated tax and e-payment system to fast track all tax application and payment processes, and to ensure smooth payment procedures, constant reviewing and updating of the tax laws in order to repeal obsolete tax legislations and simplify technical terms are also the intentions of the Federal government and the tax authorities.
Do you still know any of any recent tax reforms in Nigeria? You can indicate them at the end of this post!
Yes, I agree there has been a lot of improvement with respect to tax collection and administration, but I presume that with greater improvement comes greater responsibilities and infact greater challenges. Do you agree with me?
Let us look at the number of grey areas in the laws, like the practicality of minimum tax, the issue of multiplicity of taxes, complexity that have arisen from the issues of taxes to be paid between states and Federal government, improper record keeping of all tax payers’ data records and the issue of corruption are all attempting to strain all efforts to ensure the tax payers have a sound tax payment structure and system in the country.
The following questions are what I ponder on everyday:
- Why can’t our tax authorities all harmonize the existing taxes levied by different arms of the Nigerian government,so as the reduce the increasing cases of multiplicity of taxes.
- Why can’t there be a massive overhaul of the existing tax laws since there are more loopholes found now ( A lot of tax consultants are becoming smarter and there is a growing complexity in taxable transactions that even the existing tax law cannot deal with). There is the need to have a deeper, holistic look at the tax laws with the intention to review and repeal stale legislation and add new laws in more simplified terms. Enough for tax payers to have a grasp of what is in the law.
There are more questions that bothers me, which I would have loved to indicate here on, but I’d wait for your comments and your questions and see how we all can think through this together.
Tax reforms in Nigeria, we still have a long way to go.