[size=14pt]Government to create integrated automated tax system [/size]
By Bassey Udo
October 11, 2010 10:53PM

The Federal Government is to create an integrated automated tax administration as part of efforts towards a holistic development of the country’s tax system, in line with the present administration’s commitment to the principles of transparency and accountability.

President Goodluck Jonathan said this yesterday, in Abuja, at the opening of the 31st technical conference of the Commonwealth Association of Tax Administrators (CATA).

Mr. Jonathan added that various multi-billion naira projects were recently approved for the development of a unique tax identification system to facilitate the development of a national taxpayer database.

The president, who was represented by the Secretary to the Government of the Federation (SGF), Mahmud Yayale Ahmed, said a National Tax Policy was also approved early this year to underscore his administration’s determination to build an enduring tax culture in the country.

“We have recently approved various projects running into billions of naira for the development of a national unique Taxpayer Identification System, which will serve as a national taxpayer database. We are also in the process of approving another project for the creation of the Integrated Tax Administration System, which is intended to automate and create a seamless system of tax administration in the country.

“This, along with other initiatives in the tax system, show that government is aware of the importance of an effective tax system and will do all within its powers to provide one to the Nigerian people”, Mr. Ahmed said.

He added that the tax sector has significantly developed and fast becoming a major contributor to the development of the country’s overall economy.

“Nigeria’s tax system is today being held up as a model among its peers. This can be directly attributed to the tax reforms, which commenced about a decade ago, and which have been sustained by the present administration. We will continue to provide the necessary conditions and support required by the tax authorities to make taxation the bedrock of the Nigerian economy and a major sustainable source of government revenue,” he said.

Tax is important

Segun Aganga, the minister of finance, represented by Yabawa Lawani Wali, the minister of state for finance, said an ineffective tax system as a result of poor funding, lack of enabling technology, lack of training, and skilled human capacity, has always led to leakages and huge losses of government revenue.

Mr. Aganga said in most developing countries that depend on the development of natural resources as government’s major revenue earner, the tax administration system has been left behind by the transition from a mono-product economy to an industrialised and diversified economy, due to government’s inability to properly understand and cover transactions within the specialised areas covering oil and gas as well as telecommunications.

The minister expressed the hope that the conference, which focuses on the theme ‘Exchange of Information: Domestic and International and the Taxation of Specialized Sectors’, would come up with resolutions that would enable tax administrations of Commonwealth member countries utilise available skills and technology to maximise tax revenues from specialised sectors for national economic development.

Ifueko Omogui-Okauru, the chairman, Federal Inland Revenue Service (FIRS), said the annual technical conference has always provided avenue for Commonwealth countries to deliberate on critical issues affecting tax administration in the countries.

Mrs. Omogui-Okauru noted the significant progress by government in the development of the country’s tax system and administration, though she noted that more work still need to be done, as is the case in most CATA member nations.

http://234next.com/csp/cms/sites/Next/Money/5629274-147/government_to_create_integrated_automated_tax.csp

it will never work, in fact only fools pay tax, government people will eat the money. how many people pay tax abroad, it will never work joo.

LouisThoru:

it will never work, in fact only fools pay tax, government people will eat the money. how many people pay tax abroad, it will never work joo.

Bros, you de fear tax?
If "abroad" means Somalia, then very few pay tax, if however, it means places like Europe, the US or China, then everyone pays (except criminals). The good sides of taxation far outweigh any negatives; Lagosians are seeing its benefits and are quite happy, indeed they couldn't be farther away from  complaining.

@topic
Nigeria desperately needs to begin building all the institutions that make normal countries tick. We can't continue living in a society based on theft; those at the top steal like they are mentally handicapped, while bribing the sods at the bottom with lawlessness like not paying taxes and access to the most sensitive documents with a little egunje. But the current system of patronage takes back twice as much as it gives to its sorry customers.

I am quite encouraged by the raft of developments coming out of govt these days, which should see Nigeria becoming a more accountable country. Things might not yet be perfect, but a solid framework is being built.
No modern country runs without data, but our shamelessly corrupt Nigeria has made that a goal, because corruption hates leaving traceable tracks.
If all goes smoothly, the national unique Taxpayer Identification System will enable every adult to be counted and will serve as a reference point for all sorts of interesting data. For example, at the press of a button, figures for the contribution of women folk to the economy will pop out; at the press of another button figures for men between the ages of 30 and 45 from Ogoja will be available. Now thats real basis for planning!

It falls on each and every one of us to fight hard so that projects such as this one do not fall by the wayside, or end with the present govt.

We are heading slowly, but surely toward true federalism.
Some time ago, I posted about another project thats about calculating revenues raised at all levels by all LG's and states. It is a very encouraging and far-sighted article, just what Nigeria needs; here it is again;

[size=14pt]FG budgets N1.6bn to compute states’ contribution to national economy[/size]
Friday, 17 September 2010 01:16 Onyinye Nwachukwu   

The Federal Government said it has budgeted about N1.632 billion to carry out a “first ever” exercise that would enable states of the federation begin to compute their individual Gross Domestic Products (GDP) to the national economy.

The exercise, which starts almost immediately, would help the Federal Government monitor what each state is contributing to the national GDP, thus generating some form of competition among them. Shamsudeen Usman, minister of national planning commission, said on Thursday that the process would come in two phases: the first, covering the planning and pilot study while the second phase would comprise the training of enumerators and the actual field work survey.

He announced that the budgeted sum for the exercise is to be shared among the Federal Government, sub-national and the development partners in a 40:30:30 ratio, bringing their expected contributions to about N652,800,000, 489,600,000 and N489, 600, 000, respectively. GDP is the most comprehensive parameter for measuring the level of economic activity in any economy over a particular period and can be computed at the national and sub-national levels. Nigeria’s GDP, at the moment, is only computed at the national level but the minister said the disadvantage is that it does not provide information on the size of the sub-national economies that make up the overall GDP as is done in other countries like India, Ghana etc.

At the opening session of the first two-day sensitisation workshop on state GDP computation for Nigeria in Calabar, Usman said sub-national GDP computation which is relatively new globally is the most comprehensive and reliable measure of economic activity at the sub-national levels in federal economies. He said monitoring output at sub-national levels would serve as a basis for benchmarking the economies of the states and the Federal Capital Territory (FCT), as well as generate healthy competition amongst them on periodic basis, while providing disaggregated data and information for improved management of the states’ economies. The minister was optimistic that computing GDP at state level would help facilitate transparency and accountability as well as help monitor and evaluate key programmes of government.

He further told the gathering that state GDP is expected to be developed within the national framework, using standardised methodology and procedures to ensure consistency and credibility of the results, adding that the exercise is intended to draw from experiences and lessons from these countries. “Given the renewed interest in expanding the policy space at the lower levels of government of Nigeria, it has become more necessary than ever before for the Nigerian statistical system to further improve its data generation efforts, especially in the area of revenue and expenditure. It is in this context that efforts are being made by the Federal Government to commence the production of state GDP for Nigeria,” Usman said.

At the event, Slyvester Monye, secretary to the planning commission, noted that the computation exercise is expected to produce the quarterly and annual GDP series reflecting detailed characteristics of the economy at the sub-national level.

http://www.businessdayonline.com/index.php?option=com_content&view=article&id=13599:fg-budgets-n16bn-to-compute-states-contribution-to-national-economy&catid=85:national&Itemid=340

LouisThoru:

it will never work, in fact only fools pay tax, government people will eat the money. how many people pay tax abroad, it will never work joo.

It is evident that Lord Louis is not alive to his civic responsibility. He is most likely to be living on the fringes or he is self-employed or probably he has not had any gainful employment or perhaps, he is working in the underground economy and his wages doesn't get reported to the government. Otherwise, he could not have made that gaffe. Tax evasion is a crime and don't let me come after you, because I am a tax auditor.