Tax professionals have emphasised a need to align the nation’s tax policy with the economic plan, mostly the monetary and exchange rate policies for the ongoing national tax reform to be more effective.
Moreso, they advised tax administrators at both national and state levels on sustainable tax reform while proffering steps and strategies to realise it.
Speaking during an interview session, a chartered tax practitioner, Dr Titilayo Fowokan opined that while efforts are being put into tax policy reform, there should be deliberate moves to make reform sustainable.
According to her, tax policy reform which entails having a national strategy to create a more efficient, effective, and equitable tax system, will be more successful and impactful if sustainable.
She said, “The ongoing tax reform of present administration is a step in the right direction that will drive responsible and accountable public governance, as well as enhance macroeconomic stability, growth and development in overall.
“A move to further align this tax reform policy with monetary and exchange rate policies will go a long way to facilitate the creation of a business environment that facilitates inflow of investments, increase in productivity, revenue generation, and ultimately growth in the nation’s GDP.”
To make tax reform sustainable, Fowokan suggested a simplified tax system and elimination of multiple taxation.
She said, “There is a need to review the tax system to achieve a balance between simplicity, certainty, and stability. Simplicity will result in reduced administration cost, greater accountability, and improved stability, while certainty helps with government spending and planning. With these two in alignment, stability is achieved and useful for effective planning & sustainable compliance by citizens.”
Fowokan maintained that tax reform was not new to the system but only recently became pronounced with the reawakening of the Finance Act era, which allowed for the annual amendment of tax laws.
