The Executive Chairman of the Federal Inland Revenue Service (FIRS), Muhammad Nami, has said that deployment of tax revenues for the common good of the citizens will increase tax compliance by citizens who see the direct benefit of the taxes they pay.
According to a statement by Johannes Oluwatobi Wojuola, Special Assistant (Media & Communication to the Executive Chairman, FIRS, Nami, said this in his opening remarks at the launch of the Public Finance Database by the Nigeria Governors’ Forum in Abuja recently.
The FIRS chairman argued that the low compliance tax rate in most developing countries was as a result of the failure of the social contract between the taxpayers and the government, noting that those in political leadership in the country had a duty to promote a tax-paying culture by relating projects and infrastructural developments executed by them to taxes paid by taxpayers.
“Taxpayers need to see what has been done with their money to be encouraged to continue to pay their obligations under the Social Contract they have with the government.
The FIRS boss further argued that projects funded by taxpayers’ moneys should be reported as such and not personalized so that citizens would begin to relate these projects as the proceeds of their taxes.
“There is the need to de-emphasize and de-personalize projects so that the citizens will begin to relate all the ongoing laudable projects in the states to tax revenue. This singular act to a great extent will increase the tax morale and enhance compliance.”
Mr. Muhammad Nami, an advocate for a harmonized tax system as a cure for tax revenue leakages used the platform to call for the country to make a bold paradigm shift by harmonizing the country’s tax system to optimize tax revenue collection.