The Chartered Institute of Taxation of Nigeria (CITN) yesterday endorsed the proposed tax reform bills but advised the Federal Government to drop the derivation aspect in order to ensure the success of the reforms.
The President of the Institute, Mr. Samuel Agbeluyi, gave this advise at a media workshop for finance journalists in Lagos, saying, “If the derivation principle would pose a problem, then it can be dropped as we cannot throw away a baby with the bad water”.
Agbeluyi noted that the government has demonstrated a strong commitment to overhauling the nation’s tax system, reducing dependency on oil revenues, and promoting fiscal stability.
The CITN President, while welcoming the government’s efforts at reforming the tax system, urged stakeholders to base their assertions on facts and figures.
He said: “The government’s key reforms and initiatives include introduction of Executive Orders and Tax Relief Measures.
“President Bola Tinubu signed four executive orders in July 2023, which included significant tax relief measures, such as the suspension of the 5% excise tax on telecommunications services.
“Establishment of the Presidential Fiscal Policy and Tax Reforms Committee, which committee was inaugurated in August 2023 to address critical challenges in fiscal governance, revenue transformation, and economic growth facilitation.”