Taxaide, a firm focused on tax management, has expressed support for the federal government’s policy to target non-oil revenue sources.
It also urged the federal government and the Federal Inland Revenue Service (FIRS) to focus on home grown technologies that understand the peculiarities of the Nigerian tax system and essentially designed as services and not as one-size-fits-all product.
According to the firm, the strategies highlighted by the federal government in its Economic and Recovery and Growth Plan (ERGP) are achievable if the right policy approach are adopted.
Taxaide stated this in a report obtained Wednesday. However, it pointed out that at the risk of spilling out the contents of the government’s strategy, a clear policy statement of the Federal government on how it intends to source for or develop its purposed technology is relevant.
The company noted that sufficient interaction with the Nigerian tax system will reveal that the challenges it faces are essentially processes on the following seven functions, which it listed to include registrations (with which new taxpayers can be gotten); computations (with which the accuracy of taxes can be arrived at); Remittances (with which taxes can easily be collected); returns (with which information can easily be supplied to the relevant tax authority (“RTA”)) and receipting (with which the tax authority can appropriately communicate its collection and certification to the tax payer).
Others are auditing (with which the RTA can verify information provided or other details from the tax payer); and accounting (with which the RTA can appropriately account for the specifics of its collections to its relevant authorising government). Speaking of tax remittances and seeing the focus on customs duties, it is no gain said that technology is equally important. In our view, the importation process should begin from the Form M process, to vessel clearance and cargo clearance.
“We believe that the ERGP’s policies, objectives and strategies for accelerated non-oil revenue generation are attainable with well thought-out actions for implementation, particularly with the FGN’s increased collaboration with private sector efforts in the Nigerian tax space,” the company added.
Meanwhile, FXTM Research Analyst, Lukman Otunuga, has noted that the improving sentiment towards the Nigerian economy was boosted further on Tuesday following reports of the nation’s inflation declining for a third consecutive month in April at 17.24 per cent.
According to him, the visible display of price stability had boosted investor confidence towards the nation with the Nigerian Stock Market marching into gains and becoming a champion among its emerging market peers.
“With the Nigerian parliament recently approving the government’s seven trillion naira budget to revive the economy, the overall outlook is starting to look quite encouraging in the longer term with 2017 acting as the first major test.
“A vulnerable dollar continues to offer some support to the Nigerian Naira with the local currency set to gain further ground if the dollar continues to weaken. Investors may direct their attention towards Nigeria’s pending GDP report issue this Thursday which could boost confidence towards the nation’s economic recovery if Q1 growth exceeds estimates,” he added.