Mr Mark Abuh, a tax expert with GEMS3 (Growth and Employment in States), on Monday said that harmonisation of tax laws by all tiers of government would eliminate incidence of multiple taxation.
Abuh gave the advice in an interview with the News Agency of Nigeria (NAN) in Abuja
NAN reports that GEMS3 is a DFID funded project being managed by Adam Smith International
The organisation is involved in improving the business environment in Nigeria through tax harmonisation in the various states
Abuh defined multiple taxation as “a situation whereby the same tax base is taxed more than once by different jurisdictions”, adding that this was affecting the economy of the country.
He called on the Joint Tax Board to intensify efforts to curb the incidence of tax multiplicity which was affecting business as well as the economy.
The tax expert also stressed the need for the Federal Government to review the existing laws and ensure compliance with the provisions of the constitution on tax matters by all.
“The best way to handle multiple taxation is to review the existing tax laws at all levels to close up loopholes in existing laws.
“There should be harmonisation of tax laws among all tiers of Government to eliminate clearly overlapping collections of same or similar taxes and levies.
“There should also be tax education for both the tax payers and staff of tax authorities which includes publication of approved list of taxes and levies within the states and local governments.’’
ccording to him, this will go a long way to enlighten the public and facilitate compliance
Abuh identified reduction in output, profit, investment and gross domestic Products (GDP) as harmful effects of multiple taxation to the economy.
“Multiple taxation means paying similar or same taxes to two or more levels of government.
“It also refers to a situation whereby the same tax base is taxed more than once by different jurisdictions.
“It is a key disincentive to both local and foreign investments, it leads to high cost of business and could eventually lead to divestment of major stakes off an economy.
“Multiple taxation reduces enterprise output, operating surplus, investment, non-oil export and GDP while inducing inflation and improving government revenue,” he said. (NAN)
