Stop using touts, non-state actors for tax collection, CITN charges FG

• Urges NSA to restore sanity in tax system

Amidst efforts to increase revenue generation from tax, the Chartered Institute of Taxation of Nigeria (CITN), yesterday, in Abuja insisted that the many leakages of revenue into private pockets including ‘area boys’ must be stopped immediately.

While the government is facing serious revenue and relying on borrowing amidst widening budget deficits, some individuals are channelling tax revenue into their pockets thereby depriving the public of necessary infrastructure development.

CITN insisted that the Office of the National Security Adviser (ONSA) could use its power to ensure that non-state actors like ‘area boys’ don’t go about taxing Nigerians.

CITN President, Samuel Agbeluyi, at the opening of the CITN Abuja liaison House named after the first CITN President David Ajijola Olorunleke said if Nigeria must increase the Gross Domestic Product to tax ratio, those that are not empowered by the constitution to collect tax must be stopped

He said “There is no alternative than to stop the non-state actor from collecting tax, we have to stop them and that is why I mention the NSA to stop them. You can’t allow the non-state actors to play a vital role in collecting tax, it is not sustainable, it is not possible it is not a civilised way of doing things and there is no accountability in it.”

He noted that activities by the non-state actors in tax collection are responsible for Nigeria’s low Tax-to-GDP given that the non-state actors are not accountable for the percentage they are collecting and they are not putting it into the common purse of the country. “They are just distorting our data, it is a must it must be stopped,” he stressed.

Agbeluyi mentioned that the collection of tax by non-state actors is mostly common at the local government level as some local government Chairmen use it to compensate individuals who supported them during campaigns, saying whatever the case the menace must be stopped.

The CITN President further urged the government to utilize taxpayers’ money for infrastructural development to reduce the trust deficit of citizens in the government, saying when revenues are well utilized it will build more confidence and many Nigerians will come into the tax net.

The first CITN President Chief Chief David Olorunleke, recalled that CITN was inaugurated 42 years ago due to the pressing need for a professional body dedicated to the development and regulation of the tax profession in Nigeria. At the time, taxation received scant attention, overshadowed by the allure of oil revenues

In those early days, he said there were numerous challenges, including establishing credibility, gaining recognition and fostering a culture of excellence, saying like the proverbial mustard seed, our modest beginning with fewer than ten members has grown into 28,000 professionals both home and abroad.

Olorunleke however, said he feels honoured for the naming of the liaison office after him and appreciates all members of CITN saying, it is a recognition of the collective efforts of the founding members,

He noted that the landscape of taxation is constantly evolving, presenting new challenges and opportunities, with the digital economy, globalisation, and changing regulatory environments. He said: “It requires us to be agile, innovative, and forward-thinking. I am confident that CITN is well-positioned to navigate these changes and to continue to lead the way in the field of taxation.”