Thursday 14 July 2016

CONCENTRATING EFFORTS, WORKING HARD TO INCREASE TAX COLLECTION, WITHOUT SIMILAR EFFORTS TO IMPROVE TAX COLLECTION, IS INIMICAL TO DEVELOPMENT

By Nnabugwu Chizoba

Under the Nigerian law, Taxation Policy, is enforced at 3 different levels, referred to as the 3 tiers of Government. The levels, include the Federal, State, and Local Governments. 

A close look at the structure of governance and political administration, in Nigeria, reveals that there is a Federal Government, at the centre, 36 State governments, and the Federal Capital Territory, (FCT), Abuja, and 774 Local Government Areas. 

Each of the entities noted above, has its sphere of Tax jurisdiction, administration and control, clearly spelt out, well enunciated, systematically and structurally outlined in the Taxes and Levies (approved list for Collection) Decree, 1998.

Governments, at all the spheres of governance in the country, have made laudable and concerted efforts to increase Tax collection in their areas of Tax jurisdiction and control. That the efforts, have not yielded the desired results, is a major concern to government, at different levels. It is a very clear indication of revenue loss, a depletion and/or leakage, if you like, of revenue expected to accrue to government. It is also an indication, that some mistakes has been made, are still being made, in terms of Tax Administration; or at least that things can be done differently or both. 

In the recent time, Nigerians, through the media, electronic and print has been inundated with news, messages and the likes, on Tax and other matters relating to it; more often than not, urging them to comply with the, constitutionally imposed mandate, of Tax payment.

With the fall in the price of Crude Oil, in the international market, the common language, within the government cycle, at different levels, in Nigeria, in the recent time, is economic diversification. It has been insinuated, time and time again, by those in authority, at all levels of governance in the country, that the private sector will be the driver of the economy. Whether there are clear or noticeable indications that government is willing to pursue such statement beyond rhetoric, is beyond my comprehension, at least, at my level as a common man, struggling and striving to ache a living. I have the belief that other Nigerians, at my level will still say the same.

However, what is undoubtedly clear, at the moment is that government at various levels, is positioning to release her weight on the fragile, private sector, in the name of enforcing Taxation policies, to generate revenue, for government activities and programmes.

I am pretty sure, that self-acclaimed protagonists and promoters of government, and governments’ programmes, would not want to view, hear or see, the private sector as fragile. Whatever their reason may be, my simple advice is caution. It is my watchword. Noticeable signals in the country, do not seem to support any such move.

If the government, at any, or all the levels, is truly serious about rebuilding the economy, and making the private sector, the engine room or driver of the economy, common sense demands that deliberate steps, through well calculated and systemized efforts would be made, first and foremost, to make the private sector very active, to ensure her survival and growth. It is quite obvious that the private sector, in Nigeria is presently at the embryo stage, in its development. 

It is general knowledge, an incontrovertible fact, a common principle and practice in life, that, whoever, that wishes to reap bountifully, must first, embark on investment through, meaningful sowing. Planting precedes harvest. The case of Nigerian businesses, or the private sector, generally, is no exception.

Jumping into conclusion, by government functionaries and their cohorts, as their body language is revealing presently, will not be very palatable. It will not only live a sour taste, but promises to destabilize, the already, shaky foundation. Beyond this, such a move is not in tandem, with the numerous assertions and promises of government, at almost every fora, about repositioning, the Nigerian economy, through private sector oriented efforts. 

For any action by government in this present perspective and dispensation, to be considered, apt and reasonable, and as a matter of fact, appropriate and pursuant to the course of private sector oriented development agenda, such efforts must be generous, at putting the infrastructure, necessary for the private sector, to stand and attain sustainable development status. 

Anything short of the above, may easily, fall into the category of those efforts that could be described as bouncing on the private sector businesses, for the sake of individual and self-aggrandisement, but certainly not for the purpose of building a viable economy, by any pretence or stretch of imagination. 

Since we are in Nigeria, and we understand our leaders very well, we can read them and their body language, very well, like literature books. On the basis of this, it has become quite imperative to view, from the look of things, that an avenue to boost the interest of few individuals, and in doing so enrich them over and above others, might very soon, be unleashed on the public, in the name of tax administration and enforcement. 

The above thinking, holds true, because to my mind, without the required essentials and infrastructure to guarantee growth and sustainability, in the private sector activities, it is a given that no visible result is in site and no meaningful development can be achieved, apart from what the effort, from the on-set is designed to achieve – enrich few members, of the society, considered over and above the economy and the society as a whole. 

TO BE CONTD.

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