FG plans to review tax laws

FG plans to review tax laws

The Federal Government on Thursday said it would review the current tax laws in the country in order to keep pace with the rapid changes in business practices.

It said most of the tax codes in the country have become outdated, adding that with the objective of the government to drive the economy through revenue from non-oil sources, there is need to carry out a thorough review of the tax codes.

The Minister of Finance, Mrs Kemi Adeosun, who disclosed this while speaking during the 18th annual tax conference of the Chartered Institute of Taxation of Nigeria, said the federal government would work with the National Assembly to expedite action on the review.

She said, “An overhaul of our tax code is long overdue as is the redrafting of our tax laws to reflect current business practices and new trends.

“We must respond to the growing phenomenon of base shifting and other practices that allow companies to evade their fiscal and legal responsibilities.”

“We will critically examine our Gross Domestic Product to align taxes with economic activity in our bid to block all leakages.

“For example, the multi-billion naira losses being identified in our solid minerals sector by illegal and undocumented miners will be addressed with increased formalisation and review of the governing laws.”

She said the government is committed to the continuous improvement of the nation’s tax system, adding that it would use tax administration and technology to widen compliance and encourage more individuals and companies into the tax net.

Adeosun explained that already,the Federal Government is investing in technology to boost the efficiency of tax collections.

“Tax collection must grow in line with growth in the economy but this has not been the recent case in Nigeria and that is our challenge,” she added.

The minister said henceforth, it would be difficult for any non tax compliant individual or firm to get payment for job done on behalf of government from the ministry of finance.

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