The Chartered Institute of Taxation of Nigeria has urged the Federal Government to expand the Value Added Tax base.

The President of the institute, Mr. Foluso Fasoto, who gave the advice in Lagos on Friday, stressed the need to incorporate those still left out of the tax net before considering raising the VAT from its present five per cent to 10 per cent.
Fasoto, who spoke at the presentation of three Statements of Accounting Standards, noted that the current regime in taxation does not allow government to realise up to 50 per cent of the taxes it should. “The authorities therefore, need to widen the tax net to some people and corporate organisations that would in this circumstance be captured in the VAT configuration.”

According to Fasoto: “There are still a lot of firms not captured in the VAT net. The Federal Inland Revenue Service has been working assiduously to bring more companies and corporate organisations into the tax net, which was as a result of the tax reforms. After we must have done this, government and its relevant agencies may now be in a position to review the VAT or justify its increase.”
He commended the FIRS for sticking faithfully with the implementation of the tax reforms, which he said, is already yielding results. “One immediate result is that public aversion to taxes is changing.”

He commended the management of FIRS for maintaining excellent relationship with all stakeholders in the tax system. “On weekly basis, we relate with FIRS and this allowed us to make inputs into the tax reforms. This allowed us to make sure the bills were properly harmonised at the National Assembly.”

The CITN boss assured that all stakeholders have made inputs into the SAS. “It has, therefore, incorporated all information,” he assured. He said the greatest challenge with the Nigerian tax system is the need to provide the needed direction to make the nation’s tax system globally competitive”.

He said the standards would be displayed on the institute’s website and wouldl be available for those who subscribe, adding that a defaulting member could be dismembered with his name circulated to all the government agencies and other relevant organisations or employers.