Economy: How new tax laws benefit SMEs, ordinary Nigerians, by CITN President

*Innocent Ohagwa, President, Chartered Institute of Taxation of Nigeria, clarifies the new tax reforms laws will benefit Small and Medium Enterprises, and ordinary citizens rather than impoverish them in the economy

Alexander Davis | ConsumerConnect

Against the backdrop of some concerns about the new tax laws, Mr. Innocent Ohagwa, FCTI, President, Chartered Institute of Taxation of Nigeria (CITN), has said the new tax reforms legal instruments will benefit Small and Medium Enterprises (SMEs), and ordinary citizens rather than impoverish them.

ConsumerConnect gathered Ohagwa highlighted this at the weekend during the Investiture of the 7th Chairman of CITN Ilorin and District Society and the inauguration of the Executive Committee.

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The President of CITN noted the fear of the new tax laws is unfounded because the new reforms would solve the problems of SME owners in the Nigerian economy.

He also explained: “For example, if you have a small company that is operating up to 100 million turnover or 250 million assets, you will be exempted from payment of tax.

“But you will be required also to file returns because there is no way the relevant authorities will know that you are in that ratio if you don’t file your returns.”

Ohagwa said: “And there are numerous incentives that are embedded in the tax reform; what is just needed is for Nigerians to give it a chance, which is by performing their own obligation.

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“This obligation is that being exempted from tax is not an exemption from having a tax identification; it is the tax ID that will enable you to migrate when you leave that threshold.

“For me as an expert, this is the best tax reform I have ever seen in my life.”

According to him, CITN will continue its advocacy role through the district societies and different bodies under the Institute.

Speaking at the event, Mr. Taofiq Alabi, newly sworn-in Chairman, promised to collaborate with relevant stakeholders.

The collaboration, Alabi said, would be to sensitise, educate and correct the public on misinformation about the new tax law.

He stated: “In terms of sensitisation, we are going to collaborate with the state government and the business people.

“We will be meeting with the Kwara Chamber of Commerce, Industry, Mines and Agriculture (KWACCIMA), and some other key people to explain this new reforms.”

The Chairman noted: “This is because most people at the grassroots do not know what the new reform entails; they are just being fed with lies.

“So, we need to bring the education to the grassroots, and we can only do this through those associations, and by meeting with market women.”

In his presentation, Mr. Chimenka Nzeribe, Guest Speaker, emphasised the importance of tax harmonisation.

Nzeribe said the recurring issue of multiple taxation had discouraged several investors, a situation he described as bad for the nation’s economy.

Earlier in her remarks, Dr. Hauwa Nuru, Kwara Commissioner for Finance, said the emergence of the new executives was a call to higher service.

Dr. Nuru expected them to build on the foundation laid by the predecessors, report said.

She also said: “I want to encourage you to prioritise the initiative by fostering continuous professional development and advocating clear and transparent tax policies.

“You should also establish partnerships with the government and private institutions to enhance tax compliance and revenue generation in the state.”

Mr. Yakub Aduagba, Chairman, Investiture Planning Committee of CITN, described the investiture as a celebration of intelligence and professionalism.

Aduagba emphasised the investiture typified having a round peg in a round hole, the spirit of commitment, expertise and dedication that the institute embodies.

He added: “Our district has played a significant role in shaping the landscape of taxation in our domain by advocating for tax awareness and tax education at all levels.”

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