By Providence Adeyinka
To achieve an effective tax regime, boost revenue generation, it is important for the federal government to be transparent and accountable for every tax generated, said Group Head of Tax at Nestoil, Stanley Ezekobe.
He added that one of the major reasons Nigeria cannot maximize revenue through tax is because the government is not accountable, pointing out that maximizing revenue generation through efficient taxation is the only way to meet its revenue target for the 2021 budget.
Speaking at a virtual media roundtable organized by the Nestoil Group, Ezekobe who spoke on the topic, ‘Maximising Government Revenue through Effective Taxation’ said there is a need for the tax authorities to seek innovative ways of bringing more people into the tax bracket.
He said while other tax vehicles like Company Income Tax are important, transaction-based taxes hold the key to the government meeting its revenue target for the 2021 budget of Economic Recovery and Resilience.
Also, he said the informal sector, where most Nigerians play is either heavily under-taxed or not taxed at all.
“One of the ways to bring the informal sector into the tax bracket is to make the presentation of a tax card a pre-requisite for Nigerians to enjoy specific services from Government. The government should also identify key local figures in their different communities that will greatly assist them in identifying and collecting taxes on their behalf. This community initiative is crucial if the tax net is to be significantly expanded.”