Improve tax accountability, harmonise payment system, FG, states urged

The International Budget Partnership (IBP) and the Civil Society Legislative Advocacy Centre (CISLAC) have urged Nigeria’s three levels of government to improve transparency and accountability in tax management while working towards a more unified tax payment system.

Senior Programs Officer at IBP, Chika Okoh
expressed these views during a recent policy dialogue on research findings related to gender analysis in informal sector tax policy and administration in Cross River state.

She highlighted that the research focused on the informal sector, especially impacting low-income women, and identified areas where government policies could be enhanced to facilitate tax compliance in this sector.

Okoh pointed out that awareness of tax obligations remains low among informal sector workers, indicating a pressing need for better tax education. She also noted concerns about tax evasion due to cash transactions, which may not be properly recorded.

Additionally, she identified fairness issues, as the informal sector lacks the same minimum income exemptions found in the formal economy, leaving lower earners unprotected from Personal Income Tax.

She emphasized the problems of multiple taxation imposed by state and local governments, which often harasses women by individuals not affiliated with the government during tax collection. Okoh commended the Cross River Internal Revenue Service (CRIRS) for its efforts to tackle multiple taxation and improve digital tax collection methods.

She recommended targeted tax education and the elimination of non-governmental actors in tax collection to ensure all payments reach the government, thus reducing revenue leakages.

CISLAC Technical Programme Lead, Mr. Ayo Omowu, emphasized the critical need to address revenue leakage and manage tax expenditures and debts effectively, noting that Nigeria’s intricate tax system has developed over time.

He highlighted taxation as a key strategy for generating revenue and fostering economic growth as the country attempts to reduce its reliance on oil.

During a discussion on important action steps, Barr Williams Itorok, Chairman of the Tax Justice Network in Cross River state, urged the government to implement fair taxation for its citizens.

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