Tax payment, way out of economic recession —FIRS boss

AS the country battles with hardship, occasioned by economic recession, the director, Tax Pol icy and Advisory, Federal Inland Revenue Service (FIRS), Mr Peter Ademola Olayemi, on Tuesday tasked Nigerians on prompt payment of tax as a potent way out economic recession.

He said the most effective way to end the excruciating effects of economic recession is the payment of taxes by individuals, corporate bodies and all other taxable entitie.

Olayemi, who stated this at the investiture and inauguration of new executives of the Chartered Institute of Taxation of Nigeria (CITN), Osogbo District held at Ripples Hotel, Osogbo, Osun State Capital said there need for Nigerians to ensure tax compliance, with a view to assisting the government in tackling economic challenges.

Represented at the occasion by Mr. J A Asaolu, he stressed that the best option without resorting borrowing to engineer economic growth during a period of economic recession is through taxation.

Delivering a  lecture titled: “Advocacy As A Tool For Revenue Generation and The Role Of Taxation In Economic Recession”, Olayemi explained that tax cuts may not be the popular choice in Nigeria but initiatives such as tax amnesty and some other recent administrative changes in conjunction with tax incentives already provided in the tax laws were steps in a good direction.

According to him, “In Nigeria, the tax amnesty facilitates increased tax revenue generation while leaving taxpayers with more funds to spend on consumption of goods and investment in productive capital goods.

“It is therefore apparent that taxation has an enormous potential to improve a country’s economic realities especially in the face of economic recession. Taxation should be a vital tool in the arsenal of policymakers in the drive to turn around the economy.

Speaking at the event, Osun State Governor, Ogbeni Rauf Aregbesola urged  CITN in assisting the government at all levels embarking on advocacy and enlightenment programmes for improvement in voluntary compliance by taxpayers.

He stated, “we need the unwavering assistance of the institute as a whole in the advocacy drive towards incremental revenue which is the only savior at this critical time of economic recession.

Aregbesola who was represented by the Chairman, State Internal Revenue Service, Mr. Dayo Oyebanji directed the state revenue service to create enabling environment for the institute to practice their profession unhindered in the state.