SINCE the assumption of Zacch Adedeji to office as the Chairman of the Federal Inland Revenue Service, FIRS, I have followed keenly his enunciation of his principles of taxation, which, to my mind, can translate to a pathway to Nigeria’s economic growth. To be sure, Adedeji’s principles of taxation embody some of the normative principles of taxation which are certainty, flexibility, equity, simplicity, and utmost good faith.
He says it is the duty of the government to create a conducive environment for taxpayers and their businesses to thrive in the hope that once they have a fulsome yield, they will gladly pay their taxes. That is why he says the taxman is not aiming to tax poverty but prosperity. Adedeji’s principles of taxation anticipate economic boom, and discourage tax hikes in times of economic depression.
Recently, the Federal Government took the right step in the right direction by establishing the Consumer Credit Scheme which guarantees access to loans facility for the citizenry to grow their business activities. The logic here is that once there is a boom in economic activities in the informal sector of the economy, there will be a corresponding widening of the tax net without complaint from the tax paying community.