Monday, January 25, 2021

CITN seeks reduction in government borrowings

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The Chartered Institute of Taxation of Nigeria has said the tendency to borrow for recurrent budget deficit in the country can be addressed by increasing the tax net.

The President, CITN, Olajumoke Simplice, said this during the third annual international academic conference on taxation said on the citizen’s part, the level of tax compliance is abysmally low such that revenues from taxation cannot fund development projects.

She added that available data from the Joint Tax Board showed that just about 13 per cent of our population are in the tax net and this is not encouraging for any nation that desires to achieve development in the foreseeable future.

The CITN president suggested that If the number of active taxpayers across all sectors could be ramped up, recurring budget deficits and tendency to borrow to fund the budget will be adequately addressed.

On the governance side, she said, there was a glaring trust deficit between the citizens and the government if it would channel tax revenues for its intended purpose.

The CITN said there is a need for both players in the social contract to play their part for the country to achieve economic development.