The federal government shouldn’t increase Value Added Tax (VAT) just because Nigeria has the lowest VAT rate in the world as its economic conditions are not the same with countries with high VAT, the Association of National Accountants of Nigeria (ANAN) has said. The president of ANAN Prof. Muhammad Akaro Mainoma who spoke at the ANAN 24th annual conference which began in Abuja yesterday also said what the federal government should focus on is to expand the tax nets to capture those presently not paying taxes. He also said if the FG must increase VAT, it should be on luxury goods only. The two-day conference has the theme “nation building and sustainable growth: challenges and prospects.” “Nation building is not about competition or copying from other countries. Our circumstances are different. We must understand that we cannot just increase VAT rate because our own is the lowest. We can increase receipt from VAT by doing other things,” he cautioned. According to him, “if we learn properly, we can adjust the vatable goods, we can differentiate the rates and charge higher rates for luxury items. The process requires a lot of learning. The countries with higher rate have different economic conditions and living standard. We must appreciate that” he noted. Speaking on the theme of the conference, the ANAN president said the task of nation building involves everyone. He noted that the “easiest way to build the nation and sustain it is through Learning, Entrepreneurship, Goal Congruence, Accountability, Collaboration and Youth Development (LEGACY). He also said the Accountant is not only expected to create value for the present but to ensure the sustenance of the value. We do not only prepare historical statements but prepare projections. We must not produce to the extent that we destroy the system that others after us cannot make use of it. Prof. Mainoma also told the gathering that the Association is working hard to improve on it’s professionalism and reposition the institution. “We have secured a 5-storey building ‘ANAN House’ as permanent Head office in Abuja. This would enhance closer collaboration with key stakeholders” “We are currently upgrading the Nigerian College of Accountancy to ‘ANAN University of Accountancy’ to critically contribute to the advancement of the various fields of Accountancy and research.” “ANAN has commissioned her Education and Training Committee to conduct a maturity assessment to receive feedback from members on sixteen Key Success Areas (KSAs) across four broad characteristics: Sustainability, Relevance, Professionalism and Member Value to support ANAN strategic envisioning at 40 years.” “ANAN has improved her advocacy in public policy” among others. The Minister of Finance, Budget and National Planning, Mrs. Zainab Shamsuna Ahmed, who who declared the conference open also called on the Accountants to partner the government and offer useful suggestions on how to grow the economy. The Minister who was represented by the permanent secretary, special duties in the ministry, Dr. Mohammed Dikwa also said the professional advise from ANAN is particularly critical now that the federal government has constituted an economic Advisory team. The Federal Inland Revenue Service Chairman, Mr. Babatunde Fowler who delivered the keynote address faulted ANAN on the call for VAT not to be increased at this time. Mr. Fowler who was represented by Mr. Abiodun Aina, the Coordinating Director, FIRS, said both the VAT increase and expanding the tax net need to happen concurrently as the government need funds to execute capital projects. He said what ANAN and others should be concerned about is holding government to judiciously use the funds so generated from VAT increase. He said taxes serve as the major sources of revenue to the government of Nigeria. He noted that the taxes collected over the years have contributed to nation building and sustainable growth and development. However, he said tax administration in Nigeria faces a number of challenges which inhibit the provision of an efficient, professional and courteous tax service to the taxpayers. “I therefore call on you in your capacities as professional accountants to partner with FIRS to drive domestic resource mobilisation towards funding of SDGs in Nigeria” Mr. Fowler said.
Source: Daily trust