Experts: FG Will Achieve N10.4tn Revenue Target with Taxes on Luxury Asset, Affluent Lifestyle

Omolabake Fasogbon

Tax experts have emphasised the need to widen the tax net in view of the N10.4tn tax revenue target in 2024 set by   President Bola Ahmed Tinubu. 

In widening the tax net, they opined introduction of new taxes that covers affluent lifestyle, luxury asset, donation and idle cash balances. 

Speaking during the 49th induction ceremony of the Chartered Institute of Taxation of Nigeria (CITN), Rector, Federal Polytechnic, Ilaro, Ogun State, Dr Akinde Aremu reckoned that taxation, undoubtedly remained the key source of funding the economy, that is now more relevant given the country grappling with soaring debts, infrastructure deficits, and rising costs of living, amid dwindling income. 

While discussing the induction theme:  “Navigating the Tax Landscape: A Journey of Professional Excellence,” Aremu said that present reality required that tax professionals be conversant with past and present tax trends locally and internationally.

He added, “Tax professionals must also develop new strategies to support federal government towards meeting 2024 tax target.  Besides, it has become expedient for Nigeria to look inwards by exploiting tax as a means of stabilising the economy, bridging the infrastructure gap, supporting education, and creating employment opportunities”. 

Also speaking, CITN President and Chairman of Council, Samuel Agbeluyi emphasized tax prospects in the digital economy that presently accounts for between 15 and 20 per cent of Global Gross Domestic Product (GDP). 

According to him, that tax administrators are still to come to terms with the effective and efficient way of taxing digital economy increases likelihood of tax revenue leakages.

Agbeluyi said tax professionals must continually support the development and implementation of tax policy options, rules and frameworks. 

“This will maximise the benefits of the taxing rule for Nigeria, “he said. 

He said that the decision of government to set-up the Presidential Committee on Fiscal Policy and Tax Reforms reflects its resolute commitment to sustainable economic growth. 

“The outcome of the committee’s work, if properly implemented holds great potentials for bridging fiscal policy gaps and fortifying the taxation framework in Nigeria”, he assured.