THE Chartered Institute of Taxation of Nigeria (CITN), ha applauded the recent Supreme Court Ruling affirming the financial autonomy of local governments in Nigeria.
CITN in a statement signed by the Acting Registrar/Chief Executive, Afolake Oso, FCTI commended the Federal government led by President Bola Ahmed Tinubu, through the Attorney-General and Minister for Justice, Lateef Fagbemi, for the step taken towards instituting the court action which underscores its commitment to ensuring that all tiers of government are empowered to perform their statutory roles and responsibilities as provided by the constitution.
”The ruling of the Supreme Court which is a positive development must be commended because it holds a lot of promise for improved governance and development at the grassroots level. It is also a call to service for leadership at the various local Councils as they will have greater control over the resources of the local government thereby, allowing for structured planning and development,” the statement said.
It added that more than ever before, more accountability, prudence and transparency are required from the players at the local level, toward ensuring judicious use of resources for prompt payment of salaries of workers, provision of health and social services, educational facilities, infrastructural development amongst others.
The financial autonomy for local government including appropriate reforms would enhance economic activities leading to improved employment generation, reducing rural-urban migration and level of criminality at sub and national levels.
The institution noted that as an Institute devoted to promoting a professionalised tax system, it expects that this development would curb the unwholesome and uncivilised practice of touting and using non-state actors in revenue collection at the local governments, which arises from an unstructured political and ineffective tax system.
“This practice, although aimed at augmenting poor revenues, leaves the system very inactive. The Institute, therefore, urges Chairmen of local governments to commit themselves to ensuring civil approaches in the collection of taxes and levies due to the local government within the confines of the laws of the land and to allow the proper functioning of the Local Government Revenue Committee.
“The rule of law must be upheld in the collection of these levies and taxes including the need to deploy technology and well-trained officers for greater accountability and enhanced collection,” it said.
Hence, CITN requested the cooperation of local government chairmen and officials in the implementation of the yet-to-be-released tax reforms being proposed by the Presidential Committee on Tax and Fiscal Policy Reforms headed by Taiwo Oyedele, which have great promises for all the tiers of Government.
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