Obasanjo’s policies
encouraged tax evasion –Yar’Adua
By ISAAC ANUMIHE, Abuja
Friday, May 9, 2008
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•Olusegun
Obasanjo.
Photo: Sun News Publishing |
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President Umaru Musa Yar’Adua has attributed tax evasion
in Nigeria to discriminatory tax waivers, concessions and
tax holidays that characterized the immediate past administration
of President Olusegun Obasanjo.
Yar’Adua who, was addressing the 10th Annual Tax Conference
of the Chartered Institute of Taxation of Nigeria (CITN) in
Abuja, insisted that tax holidays have been selectively granted
in the past, which gave rise to discriminatory treatment of
taxpayers and muted complaints.
“You will, therefore, agree with me that persuading
those not enjoying such waivers and concessions to voluntarily
file returns and pay their taxes would be an uphill task.
In response to the yearning need for growing the manufacturing
sector, this administration will aim at targeting concessions
and waivers to desired activities, rather than their arbitrary
application that characterized the past,” he said.
He insisted that the incentives regime of the past administration
was very poor, which, according to him, necessitated the setting
up of a Presidential Committee on the Review of Incentives,
Waivers and Concessions (IWCs) in October last year, to examine
the entire situation surrounding the operation of IWCs in
the country and particularly the allegations of abuse.
Yar’Adua, who was represented by the Minister of Finance,
Dr Shamsudeen Usman, said his administration believed that
all leakages in our revenue collections should be plugged
and a level playing field created for all the tax payers to
operate within.
“Correspondingly, the committee on the 48-hour clearance
of goods at the ports is also looking at the problem of multiplicity
of levies at our ports, with a view to streamlining them,
in accordance with the extant laws so as to facilitate compliance,”
he stated.
The president also identified multiplicity of taxes as one
of the biggest impediments to voluntary compliance to tax
payers, while indicating the government’s preparedness
to work with the Joint Tax Board to encourage the states’
internal revenue boards to initiate necessary legislation
to fight the menace.
Earlier, the President of Chartered Institute of Nigeria (CITN),
Mr Ayodele Adigun had said that the institute had taken a
series of initiatives, including the introduction of tax practice
licence, seal and stamps and other operational tools that
easily make the tax payers identify the impostors wearing
the toga of tax man or woman.
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