Tax Professional Urges Investment- Friendly Tax Environment

Omolabake Fasogbon

Governments at different levels have been advised to double their efforts at enabling an investment-friendly tax environment in its quest for improved revenue generation. 

To achieve this, they are advised to shun actions that may compromise fairness and transparency in tax collection and utilization, as well as make tax process seamless to payers. 

Speaking recently in Lagos, a tax expert and former Lagos State Coordinator of Society of Women in Taxation (SWIT), Dr Titilayo Fowokan commended the boldness of the present administration on tax reforms with the implementation of Finance Act 2023 and the Taiwo Oyedele led tax reform committee, stressing that the move aligned with present economic realities, especially in improving ease of doing business. 

She however expressed worries that excessive exchange rate volatility and fuel subsidy removal have had a ripple effect on the reforms, in such a way that investors are now being pressured by soaring cost of doing business in the country. 

“Overall, businesses and companies are adjusting to the drive for compliance by the current tax system and reviewing their tax strategy, value and supply chain management, tax controls and risk management, as well as reviewing their tax planning initiatives for sustainability”.

Fowokan equally urged tax administrators to endeavour to smoothen interaction between taxpayers and new digital tax payment platforms. 

Noting that transitioning to automated tax system was a welcome development that had fared well in terms of improved tax compliance, she asserted that more can be done to enhance the innovation. 

“In relation to administrative ease of the current tax system, the FIRS should not limit Tax Promax platform to punishing non-compliance but also to grant access to benefits for compliance. This is from the angle of penalty regimes on the platform versus claim of Withholding tax credits through the platform. An improvement on this will be a plus to ease of doing business in Nigeria”.