The Chartered Institute of Taxation of Nigeria has stressed the importance of implementing an effective tax system to attract foreign direct investment to the country. Speaking during his investiture in Lagos, Mr. Abiodun Oke, Chairman of the Ikeja District Society of CITN, emphasized the necessity of creating an environment conducive for foreign investors to operate and contribute funds to the country.
Oke highlighted the critical role of a standardized tax system in fostering foreign direct investment, stating, “We desire to have an environment where they would be able to work and bring funds to the country. Recently, we have been talking about foreign direct investment; it won’t come if we don’t have a standard tax system.”
He further advocated for a review of the Nigerian tax laws, suggesting that outdated or archaic laws should be updated to align with current needs. “Look at laws because they would always tell you what is in the law. And so if the law is archaic, it is no longer up-to-date. We need to find a way to bring them on board,” Oke remarked.
Expressing optimism for progress, Oke noted that the inclusion of tax professionals in influential positions could help address issues such as multiple taxation. “So, multiple taxation has always been there but now our professionals in the tax space have been called upon to sanitize it, and I am sure something good would come out in the near future,” he concluded
He further remarked that Nigerians’ reluctance to pay taxes stems from the lack of digitization in the taxation process.
“People don’t consistently pay taxes in Nigeria. There are numerous small businesses evading tax obligations. A businessperson might conduct transactions worth billions of naira annually and only pay personal income tax, perhaps due to operating as a sole proprietorship rather than a registered company.
“However, with the implementation of digital systems to record such transactions, individuals can be effectively monitored. Thus, we aim to capitalize on the era of digital technology,” Oke emphasized.
He also highlighted his administration’s commitment to enhancing member welfare and fostering better relationships. “We must prioritize the welfare of our members and strive for seamless communication and interaction,” he asserted.
Oke further explained that in order to achieve this goal, the administration requires an e-platform through which it can engage with its members. He emphasized that digitizing various processes would enable his administration to effectively monitor members, particularly elderly individuals who have made significant contributions to the district and the institute.
Additionally, the President of CITN and a member of the Tax Reforms Committee, Mr. Samuel Agbeluyi, disclosed that the committee is strategizing to decrease the number of taxes payable in Nigeria from over 60 to just 10.
“They are proceeding with caution, and based on our observations, we aim to streamline the current 62 different taxes paid in Nigeria to a maximum of 10,” he stated confidently.
