Following the continued decline in prices of oil, which has resulted in the drastic fall in government’s revenue, Intermarc Consulting, has urged the federal government to encourage the use of electronic payment system in order to boost Internally Generated Revenues (IGR).
The call was made in Lagos at a press conference where Intermarc, through its subsidiary, PrepayGo Technologies, unveiled plans on how to proffer solution to financial leakages in government.
The Chief Executive Officer of Intermarc Consulting, Mr. Adeyinka Adeyemi, who spoke on the need for government at all levels to understand and encourage electronic payment system, said PrepayGo Technologies has concluded arrangement to hold Electronic Revenue Sustainability conference in Abuja next month, where financial experts would be showcasing modern solutions that will help government and organisations generate and manage revenue with ease.
According to Adeyemi, the conference, which is planned in conjunction with the Presidency, Federal Ministry of Finance, Office of the Accountant General of the Federation (AGF) and Joint Tax Board, would proffer strategies and tactics to grow revenues from all existing and new IGR resources within the federation, as well suggest effective ways of collecting such revenues electronically for economic growth.
“It provides the government and local authorities with an interactive forum to focus on the challenges faced with identifying and sourcing for IGR revenue collection, management and accountability across the continent. The need for federal, state and local governments to generate adequate revenue from internal sources has therefore become a matter of extreme urgency and importance. This need underscores the eagerness on the part of governments to sustain the traditional areas of taxation through IGR, as well as look for new sources of revenue in an innovative manner in order to grow revenue base and reduce loss,” Adeyemi said.
According to him, taxation plays strategic role in the survival and development of the Nigerian nation. today, both taxpayers and tax administrators must cope with more difficult environments with fewer resources.
“The role of new technology in influencing the way a country’s tax system or particular taxes becomes an issue that needs urgent attention. The realisation of this fact has triggered much interest, planning and restructuring in the area of developing taxation, especially in the developing economies, including Nigeria,” Adeyemi said.
He explained that over the years, the federal government has been doing so much in revaluing, restructuring and reforming the Nigeria tax system with the primary objectives of making it the main source of revenue generation for the government as obtained in other developed countries.
He, however, said that where the tax administration of a country is weak, its economy tends to be dysfunctional. This is why most nations have tried to align their tax systems with the growing trend, which is information communication technology in order to reduce or eradicate leakages and loopholes for corrupt practices while also creating efficiencies in the tax administration.
“From available statistics, most state governments generate only about 15 per cent of their revenue and depend on federal allocation for further sustenance. Unfortunately, this is no longer sustainable. Government therefore needs to focus on a planned strategy for a sharp turn-around from oil dependence to self-sustainability, “Adeyemi said.
“This therefore means that there is a greater need for the federal government as well as the state governments to devise strategies and tactics for sustainable IGR collection from VAT, PAYE, Income Tax, Company Tax, Property Tax, Custom Duties, Personal Income Tax, Road Taxes, among others, hence the need for the electronic revenue conference that seeks to address all grey areas in money generation and collection,” Adeyemi added.