THE Chartered Institute of Taxation of Nigeria (CITN) has commended the Central Bank of Nigeria’s (CBN) cashless policy, emphasizing its potential to significantly enhance tax collection in the country. According to the Institute, the policy fosters financial inclusion and simplifies tax payment and collection processes, thereby opening new revenue streams that can support critical public expenditures and stimulate economic growth.

Speaking during a workshop for tax and finance reporters in Lagos, CITN President/Chairman of Council, Samuel Agbeluyi, highlighted the cashless economy’s capacity to expand the tax base by bringing more individuals and businesses into the formal financial system. He also urged traditional banks to prioritize their financial intermediation roles, warning that fintech firms could overtake them if they remain complacent.

The CITN also expressed its support for the tax bills currently under review by the National Assembly, asserting that they are crucial for boosting the economy. The proposed legislation includes the Joint Revenue Board of Nigeria (Establishment) Bill, 2024, the Nigeria Revenue Service (Establishment) Bill, 2024, and the Nigeria Tax Bill, 2024. However, the bills have sparked debates, with Northern governors rejecting them as “anti-democratic” and various stakeholders raising concerns about their implications.

Key issues include: Tax Rates and Exemptions: Critics argue that the proposed rates are too high, while some feel the exemptions are overly generous.

Tax Administration and Enforcement: Doubts have been raised about the capacity of tax authorities to implement the new laws effectively.

Impact on SMEs: Concerns persist that the reforms may disproportionately burden small and medium-sized enterprises (SMEs), which already face compliance challenges.

Despite these concerns, Agbeluyi reaffirmed CITN’s commitment to supporting the government’s tax reforms. He noted that since its inauguration in May 2023, the current administration has shown political will and dedication to restructuring Nigeria’s tax system to reduce reliance on oil revenues and ensure fiscal stability.

“The recommendations of the Presidential Committee on Fiscal Policy and Tax Reforms have culminated in the Economic Stabilisation Bills now under legislative review,” Agbeluyi said. “CITN acknowledges this significant effort by the government and considers these reforms essential for addressing the nation’s fiscal challenges.”

“The journey to fiscal sustainability is a shared responsibility. The media must transcend superficial reporting to bridge the gap between policymakers and the public, offering accurate and insightful analysis of these reforms,” Agbeluyi declared Technological enhancements, such as the TaxProMax system, upgrades allowing partial liability payments, were also noted as steps to simplify compliance.

However, Agbeluyi acknowledged the concerns surrounding proposed Economic Stabilisation Bills, advocating for constructive engagement to refine these policies for equitable economic growth.

In his opening remarks, Professor Godwin Oyedo–kun, who chaired the event, underscored the media’s critical role in fostering transparency and strengthening public understanding of taxation’s impact on national development.

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