[Lagos]–Experts have advised government to expand tax base and strengthen intelligence framework through appropriate co-operation between The Federal Inland Revenue Service (FIRS) and The Corporate Affairs Commission (CAC) to improve the country Gross Domestic Product (GDP).
They gave these advices at a gathering in KPMG’s Tax Breakfast Meeting held at Lagos.
The stakeholders noted that if government deepened intelligence gathering, with proper linkage between FIRS and CAC, it would bring more people into the system and help increase the nation’s tax base.
KPMG Adewale Ajayi, revealed that many companies registered with the CAC do not fulfill their tax obligations. But if government synergizes the CAC and FIRS to work together, when a company registers as a corporate body with the CAC, it will automatically have a tax number.
Ajayi further stressed that the lack of basic amenities is part of the reasons why most Nigerians do not pay their taxes. He then advised government to implement good governance to encourage citizens to pay taxes willingly.
The Executive Director, Finance, Standard Chartered Bank, Temi Owolabi noted that tax education and dynamism in reporting tax disputes in Nigeria are to the expansion of the country’s tax base.
She stressed that the tax environment should be more competitive, adding that agency banking would help in the inclusion of informal sector in deepening the tax base.
The Partner and Head, Tax Regulation and people services of the firm, Wole Obayomi, noted that the country needs a tax reform policy that will increase tax contribution to her GDP.
He said, “There must be a holistic value added tax reform in Nigeria. A taxpayer should not pay more tax than required while the collector must not collect more than stipulated. There is need to broaden the tax space in Nigeria”.Please Follow Us @ThePageNg