Reps move to halt revenue leakages

***As bill to establish National Tax Crimes commission scale Second Reading

By Christiana Ekpa

The House of Representatives has passed for second reading a bill seeking to establish a national tax crimes and oversight commission to address revenue leakages in the payment and understand payment of taxes in the country.
The bill is sponsored by the Deputy Speaker of three House, Benjamin Kalu (APC, Abia), and eight other lawmakers.
The commission when established will check irregularities in the assessment, reporting, and remittances of taxes, prevent and combat tax-related crimes, and plug all leakages in the tax administration system in the country while protecting the rights of three taxpayers.
Leading the debate on the bill, Felix Uche Nweke (PDP, Rivers) said the amount of revenue available to any government determines the extent to which such a government may be able to provide public goods and services.
He said: “It is a pointer to how far a nation can ensure her growth and development. While taxation is considered the most important means of generating public revenue, it is worthy of note that nations that strive to develop aim at putting in place a fair, just, efficient, and simplified tax administration system that builds confidence amongst the citizens and as well motivate and encourage citizens to pay their taxes.
“While it is one thing to fix the amount of taxes to be paid, it is another for tax collection authorities and assessors to determine the right amount of taxes to be paid in accordance with the provisions of extant tax laws. Leakages occur when unscrupulous staff and agents of tax authorities collude with citizens to under-assess the tax-payer thereby resulting in underpayment.
“Leakages also occur in the form of tax evasion, especially such that is encouraged and condoned by the tax collector and more especially among multinational corporations operating within the country.
“Leakages also occur where there are non-remittances of collected taxes, that is to say where the government does not get the total amount of taxes collected as a result of revenue diversion by the fraudulent staff of tax authorities, the list is endless.
“On the other hand, some citizens, especially small businesses bear the twin burden of either over-assessment or multiple taxation. This stifles the business environment and it does not allow small businesses, ordinarily considered as the engine of growth, to survive. Not only are our tax laws not very friendly to micro, small, and medium enterprises, but such MSMEs suffer more from the activities of the tax collectors.”