Committee recommends ban on use of tax consultants, others

The technical committee on review of multiple taxations across the country at various levels has recommended that tax authorities should discontinue the use of consultants for tax assessment and collection.

The committee on the review of incidences of multiple taxation across the federation at various levels and its effects on the manufacturing sector was set up in response to the presentation by Manufacturers Association of Nigeria (MAN) to the National Economic Council (NEC) at its meeting held earlier this year.

The technical committee was headed by the acting chairman, Federal Inland Revenue Service (FIRS), Kabir Mashi. The substantive NEC committee was chaired by Ibrahim Dankwanbo, governor, Gombe State, with representatives of governors from North West, North Central, North East, South West, South East and South South. Other members are from the National Planning Commission, Federal Ministry of Justice, the presidency, Central Bank of Nigeria (CBN), Manufacturers Association of Nigeria (MAN), and secretary to the National Planning Commission (NPC) who represented NEC secretariat.

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The report available to BusinessDay shows that the committee also recommended that tax authorities should publish the approved list of taxes and levies within the states and local governments to educate the public and facilitate compliance.

“Majority of the recommendations require enforcement action by the regulatory agencies –States Board of Inland Revenue (SBIR), and Joint Tax Board and intervention agencies (federal, states, ministries departments and agencies (MDAs), police, and presidency).

Given the seriousness of the incidence of multiple taxations as constraint to manufacturing, agriculture, and overall national development, the aforementioned recommendations are among the five critical suggestions the committee calls for urgent attention.

Others are review and amendment of the taxes and levies (approved list for collection) Act 21 T2, Laws of the Federal Republic of Nigeria 2004; need to outlaw the use of unorthodox means to collect taxes and levies; and automation of tax operation by relevant tax authorities to eliminate leakages and ensure ease of collection.