The Chartered Institute of Taxation of Nigeria (CITN) has supported the Supreme Court ruling affirming financial autonomy of local governments in the country.
In a statement, CITN Acting Registrar/Chief Executive, Afolake Oso, lauded the Federal government led by President Bola Ahmed Tinubu, through the Attorney-General and Minister for Justice, Lateef Fagbemi, for the bold 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 Apex 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,” she said.
According to her, more than ever before, more accountability, prudence and transparency is 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.
She said 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.
“Above all, this will promote fiscal federalism and true autonomy at the subnational level thereby enhancing delivery of democratic dividends to the populace.
As an Institute devoted to promoting a professionalised tax system, we expect that this development will 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.,” she stated
Oso said 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.
“CITN thus, requests 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. Ultimately, Nigerians would be better off when development permeates all segments of the society resulting from these reforms,” she said.
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