a.
Nigeria to have a 24-clause
national tax policy.
b.
Compilation of registers of individuals and corporate taxpayers and
also issuance of smart tax identity cards for all tax payers.
c.
Raising of the threshold of personal Income Tax up top N200, 000,
consolidation of personal income tax free allowances to a single bulk of 40% of
assessable income and bright income rate should be 20%.
d.
Limitation of special tax incentives such as tax holidays and import
duty relief to only industries located in rural area, fully export oriented
industries, solid minerals production companies and oil and gas operations;
e.
A company to make profit before being21
exposed to companies income tax in any assessment year,
f.
Reduction of company’s income tax rate to 20% from the current 30%
rate.
g.
Speedy constitutional amendments to confirm the legality of value Added
Tax (VAT) which should be shared among states after 3% had been deducted as part
of it’s administration cost nationwide, and
h.
Local government to charge tenement rate and capitation rates and other
clear-cut user charges for services directly beneficial to the citizens only
after a through appraisal of the technical issue’s involved in the
implementation of it’s for reaching recommendations. The group22 also suggested a tax environment where
taxpayer is registered as the “King” and tax system with “human face” as a
strategic option of achieving the board policy of its sundry recommendations.
The study group, which was inaugurated on August 6, 2002, submitted its report
in July 2003.
In the same vein, a private
sector driven group was constituted on 12 January 2004 and was fundamental based
on the issues conversed by the study group’s report of 2003. The working group
was mandated in it’s terms of reference to “critically valuate the
recommendation’s of the study group and propose priorities set of strategies
whose implementation would gave effects to the reform to the Nigerian tax system,
which were grouped into;
i Short term: within 6 months of submission of the working
group’s report
ii Medium term: within 2 years of submission of the working
group report.
iii Long term: within 5 years of submission of the working group report.
It is to be noted that both
groups addressed macro and micro issues in tax policy and administration. Among
the macro issue discussed were the drafting of a National tax policy, taxation
and federalism, tax incentives and tax administration generally.
21 “Nigeria Tax Reforms: Challenges and
prospects” www.citn.org, visited on Wednesday 20 July 2011.
22 Ibid