By Olusegun Obisanya
The 16th President and Chairman of Council, Chartered Institute of Taxation of Nigeria (CITN), Barr. Samuel Agbeluyi has said that the digital economy has grown to the point that it is accounting for between 15 and 20 percent of global gross domestic product (GDP).
He noted that tax administration in Africa including Nigeria has become a bottleneck on the most effective way to tax digital economy.
Agbeluyi stated these while delivering his address at the 49th induction ceremony which was held last week Thursday in Lagos.
The event was themed, “Navigating the tax landscape: A journey of professional excellence”.
The CITN President posited: “Let me address our members on the prevailing and crucial issues in Nigeria that significantly impact the field of taxation. Like most nations of the world, Nigeria stands on the brink of a transformative era, ushered in by the technological revolution that brought with it both challenges and opportunities for taxation and economic development.
“The digital economy, as we know, as grown dramatically with digital multinational enterprises such as Amazon, Facebook and Google having significant presence in the global digital space. Currently, the digital economy is accounting for between 15 and 20 percent of global gross domestic product (GDP).”
Agbeluyi further stated, “However, tax administrations in Africa including Nigeria remain unclear on the most effective and efficient way to tax digital economy. Yet, challenges arising from technological advancement and intricate business models continue to mount; thus, increasing the likelihood of tax revenue leakages.
While commending President Tinubu for the establishment of the Presidential Committe on Fiscal Policy and Tax Reform, Agbeluyi exhibited confidence that if the report of the committee is properly executed, will bridge fiscal policy gap.
Agbeluyi added: “In recognising the intricate challenges that Nigeria faces in its fiscal and taxation landscape, one cannot overlook the commendable effort by the current government of Nigeria. The establishment of the Presidential Committee on Fiscal Policy and Tax Reforms reflects a resolute commitment to charting a course for sustainable economic growth through effective and efficient taxation.
“The outcome of the committee’s work if properly implemented holds great potentials for bridging fiscal policy gaps and fortifying the taxation framework in Nigeria. You will all agree with me that the quality of the Quick Win Report of the Committee corroborates this position.”
To overcome the daunting tax challenges Nigeria faces he enumerated above, CITN President made certain recommendation to tax professionals.
“In view of the foregoing, the need for highly competent professionals to oversee every facet of the tax system in Nigeria is now more than ever, important,” he said.
In his keynote address, Rector, The Federal Polytechnic, Ogun State, Dr Mukail Akinde noted that the tax is a veritable source of revenue for government to fund social projects.
He said, “It is a known fact that taxation has become a key source of funding nations the world over and Nigeria is not an exception. President Bola Ahmed Tinubu in the proposed budget estimates laid before the National Assembly eyes N10.4tn tax revenue in 2024.
“This is a clarion call to the Tax practitioners to achieve the set target. This portend that tax revenue base is to be widened with a view to bring more eligible tax payers into the tax net.”
