House of Reps passes bill to Tax Crimes Commission in bid to increase government revenue

NIGERIA'S House of Representatives has passed for second reading a bill seeking to establish a Tax Crimes Commission that will guarantee the expansion of the nation's tax net and drastically boost government revenue.

At the moment, Nigeria has one of the lower tax-to-gross domestic product (GDP) rations in the world of just 6%, which is very low even by African standards. With over 90% of government revenue coming from the receipt of crude oil sales, Nigeria is a chronic mono-economy and desperately needs to increase tax revenue if she wants to grow economically.

Yesterday, members of the National Assembly voted to address these problems by creating a new agency that will be headed by a national inspector-general. This new bill particularly focused on the supervision and oversight of an efficient, fair and appropriate tax system, the expansion of the tax net and the protection of taxpayers’ rights.

It was titled A Bill for an Act to Establish the National Inspector General for Tax Crimes Commission to Address Revenue Leakages Emanating from Non-Payment and Under-Payment of Taxes; Irregularities in the Assessment, Reporting and Remittances of Taxes to Prevent and Combat Tax-Related Crimes to Plug All Leakages in the Tax Administration System and to Ensure the Protection of Taxpayers’ Rights.

Hon Benjamin Kalu, the sponsor of the bill, said: “The amount of revenue available to any government determines the extent to which such government may be able to provide public goods and services.  It is a pointer to how far a nation can ensure its growth and development.

“While taxation is the most important means of generating public revenue, it is worthy of note that nations that strive to develop aim at putting in place a fair, just, efficient and simplified tax administration system which builds confidence amongst the citizens and as well motivates and encourages citizens to pay their taxes.”

He noted that while it was one thing to fix the amount of taxes to be paid, it was another for tax collection authorities and assessors to determine the right amount of taxes to be paid in accordance with the provisions of extant tax laws. According to the lawmaker, the new bill should address all of these problems.

Hon Kalu added: “Leakages occur where unscrupulous staff and agents of tax authorities collude with citizens to under-assess the tax-payer thereby resulting in underpayment.  Leakages also occur in the form of tax evasion, especially such that is encouraged and condoned by the tax collector and more especially among multinational companies operating within the country.”