$1 Trillion Economy: There is a need to optimise tax collection process-Lagos Govt.

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The Lagos State Government has said there is a need to optimise the tax collection process to be able to achieve the Federal Government’s $1 trillion economy target by the year 2030.

The Special Adviser to Lagos State Government on Public Private Partnerships, Mrs. Bukola Odoe represented by Consultant and Financial Analyst, Lagos State Office of Public Private Partnerships, Mr. Adefisoye Adekunle stated this at the 2024 Annual Workshop/ Awards of the Commerce and Industry Correspondents Association of Nigeria (CICAN) held in Lagos on Thursday.

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Odoe addressed the ongoing discussions surrounding the proposed new tax bill in the National Assembly, stressing the need for a balanced approach to tax collection that fosters economic growth and development in a fair and equitable manner.

She said enhancing tax collection processes not only boosts revenue generation but also contributes to sustainable economic progress, supporting the realization of national economic targets.

“We need to focus and optimize our collection process, make it simpler, make it easier in such a way that people with a small Phone, Android can access, you can access your tax, and you can pay without any stress.”

She espoused the importance of fiscal policy in the context of national development, emphasising that sustainable revenue generation is indispensable for progress.

She pointed out the significance of non-oil taxes for states that lack control over oil revenue. She underscored the need for prudent financial management by states for the benefit of their citizens.

She further expressed her support for a bill that aims to streamline and update tax laws, ensuring that taxes are levied appropriately and collected efficiently.
She highlighted the proposed integration of technology in tax administration to simplify processes and enhance compliance.

She said the anticipated amendment of the current VAT Acts is in alignment with the proposed bill.

She also emphasised the pivotal role of infrastructure sustainability in facilitating tax reforms, advocating for the automation of revenue collection processes in Nigeria to improve effectiveness and transparency.

“There is a saying that there is no budget without revenue. When you look at the key sectors of Nigeria’s economy, health care, road infrastructure development, power, and education, anything you can talk about, we need money to do most of these things. There is a need to automate the revenue collection process in Nigeria and sub-national”

The National Chairman of CICAN, Mr. Charles Okonji, in his address, highlighted the concerning state of Nigeria’s private sector, which serves as the economy’s driving force.

He expressed deep worry over the sector’s poor health, noting that even government interventions have failed to address the challenges.

“The repercussions are evident, with many multinational corporations relocating to neighbouring countries due to unfavourable business conditions,” he stated.

Okonji stressed the critical role of production in a nation’s greatness, saying without a vibrant private sector driving innovation and economic growth, Nigeria risks falling behind in the global market.

“It is imperative for policymakers and stakeholders to collaborate on effective strategies that will rejuvenate the private sector and attract investments that will propel Nigeria towards prosperity.”

He explained that the theme for this year’s event, “Manufacturing: $1 trillion GDP target by 2030: Realities & Possibilities,” is in line with the numerous hurdles faced by the industry.

“The ambitious target, however, also raises concerns, especially with the potential disruptions caused by the intermittent changes in government leadership in Nigeria. The lack of sustained policies and strategies across different administrations could impede progress towards achieving such a significant economic milestone by 2030.

“Despite these challenges, the confidence expressed in the capabilities of the experts present at the event is reassuring. It reflects a collective determination to navigate the complexities and uncertainties surrounding the manufacturing sector.”

Okonji, while emphasising the importance of stakeholder engagement and collaboration, particularly with CICAN, underscores the need for unity and advocacy to drive meaningful change.

“By involving key industry players and leveraging their collective voice to influence government decisions, there is a greater likelihood of shaping policies that not only support local businesses but also contribute to the overall growth and sustainability of the manufacturing sector in Nigeria”, he said.

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