TO ensure effective payment of taxation as well
as to encourage compliance by tax payers, the federal government is looking
forward to reducing multiple taxation as well as exempting all low-income
Nigerians from paying tax.
Information and National Orientation Minister,
Chief Chukwuemaka Chikelu who disclosed this to State House press corps
yesterday shortly after the special emergency Federal Executive Council
meeting, explained that this became necessary considering that so many
taxes, levies and funds are being paid by people but who are unfortunately
discouraged towards complying with the tax rules.
�We believe it is confessing, we believe the
number of taxes should be reduced to be much more manageable, easier for
people to understand and to comply with. And in addition to that we also
believe that some Nigerians who earn much lower incomes should be exempted
from taxation and the general taxation should be reduced so that they will
be encouraged to actually pay,� he stated.
Chief Chikelu who said that government will
also reorganize and re-train the staff of Federal Inland Revenue for
effective results however, said government will also create new departments
such as that of intelligence and criminal investigation so as to strengthen
the tax body in terms of capacity in order to take advantage of the new
Information Technology.
Similarly, he said, the meeting discussed on
who best to collect the taxes at various levels, whether it is a state,
federal or local government as well as the possibility to marry all under
one umbrella for effectiveness or continuity.
�Great study has gone into this and what we
have to do is a proposal that when the consultations are concluded and a
draft bill proposed, then this will be presented again to the Federal
Executive Council before being passed to the National Assembly for their
enactment,� he added.
The minister pointed out that over 70 per cent
of the taxation in this country comes from the big business companies and
unfortunately many people in the informal sector, and people in small
businesses do not actually pay tax and this really causes a disconnection
between the citizen and the government, he added.
Chief Chikelu who said that all those and other measures
intended to be taken by government are aimed at strengthening revenue
collection, further warned that government has put all machineries in motion
to ensure that all mighty tax payers who are in the habit of avoiding tax
are brought to book.
