Why FG should integrate tax laws now — By expert

With the ongoing measures to reform the nation’s tax system, an expert on tax matters, Dr. Titilayo Fowokan, has urged the Federal Government to put in place mechanisms that would integrate the country’s tax laws for sustainability.

Fowokan, in an interview with journalists, said this was necessary to make the government’s reform efforts achieve its purpose for national development.

Fowokan explained that tax reform, which includes a fiscal policy strategy designed to enhance tax administration and generate tax revenue for sustainable public finance, has its bearing on both businesses and the national economy, hence should be sustainable.

According to her, for reforms to be effective, there must be deliberate efforts to align tax policies with other economic policies.

“An alignment of tax policy with monetary and exchange rate policies will go a long way to facilitate the creation of a business environment that facilitates inflow of investments, increase in productivity, revenue generation and ultimately growth in the nation’s Gross Domestic Product (GDP),” she said.She asserted that it became more pronounced recently with the reawakening of the Finance Act, which allows for a yearly amendment of tax laws.

To achieve sustainable tax reforms, Fowokan stressed the need for the removal of multiple taxes on businesses.

“Government must as a matter of urgency revisit the taxation schools and educational institutions, integrate tax laws in simplified manners and minimise tax expenditure by eliminating tax incentives and tax credits that are not aligning with sound tax practice. This should be replaced with such that will facilitate growth in the real sector of the economy, create employment and increase the GDP,” Fowokan added.

While commending President Bola Ahmed Tinubu’s tax reform initiative, she affirmed that it would rub off positively on businesses and the economy.

“This means businesses will have to move, possibly faster than tax administration in compliance obligations through strategic tax planning and voluntary tax compliance,” she said.