CITN: New Tax Policy Will Streamline Excess Tax Refund, Boost Investor Confidence

The Chartered Institute of Taxation of Nigeria (CITN) has defended items in the new tax bill, affirming that it priortises the interest of business players and overall development. 

President and Chairman of Council of  CITN, Samuel Agbeluyi particularly lauded the administration for considering a timely and seamless refund of excess tax payment, asserting that this would boost investor confidence, in addition to opening frontiers for lucrative opportunities. 

He disabused the impression that the proposed reforms will impose an extra burden of tax increment, clarifying instead that the effort in actual terms translates to tax reduction and juicy incentives. 

 Agbeluyi while addressing the press in Lagos, ahead of CITN’s 27th tax conference holding in Abuja, with the themed, ‘Taxation for Development: Policies, Law and Implementation’, said many have failed to appreciate or doubt the good intentions of the reform exercise, largely due to existing trust deficit in government. 

He added, “Contrary to popular belief, the government is not simply increasing tax rates. In fact, the proposed reforms include reductions and meaningful incentives. The company income tax is currently 30 percent, but the proposal in the bill is 27.5 percent. 

Even the controversial VAT proposal is being offset by massive incentives.

“Many of these reforms are designed to support business growth and economic sustainability. One of the most impactful changes is also the simplification of the tax refund process. It’s not just a tax reform, it’s about improving the ease of doing business and boosting investor confidence.  The reform is one of the best decisions for business owners.”

Agbeluyi also addressed fluctuating crude oil prices and effects on the economy, stressing diversification of revenue sources, as Nigeria cannot influence global oil prices. 

He advised that amid uncertainty, Nigerian government need not be told to justify tax payment and be accountable to public funds, to motivate voluntary tax compliance. 

“It is not wise for a country as big as Nigeria to rely on oil revenue to finance its economy. The antidote to the volatility of oil prices is a sincere, transparent, and reliable tax system. Nigerians will pay taxes if they see value for their money,” he maintained. 

He explained that the forthcoming conference starting May 12, has deliberately involved state actors at both national and subnational levels to be a part of tax discussion which is believed will inform their actions in the implementation of the reforms when due.