Yakubu Dogara, Speaker, House of Representatives has expressed the readiness of the House to provide legislative framework that would help in addressing the menace of tax evasion by individuals and companies operating across the country.
The speaker stated this while addressing Teju Somorin, President of Chartered Institute of Taxation of Nigeria (CITN), at the National Assembly complex, Abuja.
Recall that Babatunde Fowler, executive chairman, Federal Inland Revenue Service (FIRS), during the just concluded public hearing on oil swap, had disclosed that Nigeria lost $250 billion yearly due to tax evasion by IOCs while some companies which participated in the refined products exchange agreement with the Nigerian National Petroleum Corporation (NNPC) between 2010 and 2012 failed to remit N1.127 trillion.
“To be candid, we are worried. For instance in Abuja here, an individual can sell a property of up to a billion naira and he will not pay a dime as tax. And there are so many Nigerians that are not paying taxes. So what is it that we can actually do as a country? What is the problem? Is it the absence of an enabling legal framework?” Dogara said.
“Is it that we have a robust framework but the problem is implementation? What is the challenge and how can we resolve it? That is the biggest problem so that we ensure that all citizens that are supposed to pay tax actually pay tax,” he said.
The speaker disclosed that the House would this week engage the Minister of Finance, Kemi Adeosun, on issues relating to diversification of the economy and taxation in continuation of its sectoral debate.
He also expressed concern over the overreliance on oil for revenue, to the detriment of other sectors saying, “I sincerely believe that we can survive from tax even if revenue from oil dries up. But we are nowhere near a foundational position on this issue of tax.”
He opined that for democracy to be sustainable, citizens must live up to their responsibilities part of which is tax payment so that they would hold their leaders accountable.
Dogara assured CITN that the House would do all it could to provide legislative frameworks that would assist in improving tax in the country.
He commended the institute for their previous contribution in the legislative activities of the House through public hearings and urged them not to relent in doing so.
Speaking earlier, the CITN president called for another round of tax reform, establishment of taxation committee in the House to deal with tax matters.
Somorin, who doubles as president, West African Union of Tax Institute, urged government to abolish earmarked taxes such as education tax, avoid too many taxes, implement the National Tax Policy and expand tax base of Nigerian economy.
KEHINDE AKINTOLA
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