Tax Justice and Governance Platform, a civil society organisation (CSO), has urged the federal government to consider a downward review of the Value Added Tax (VAT) or outright suspension of new VAT in the meantime to reflect the current socio-economic realities in country as COVID-19 pandemic rages.
The group, in a statement signed by its Coordinator, Chinedu Bassey, maintained that granting of tax holidays to the vulnerable, as well as downward review of taxes to reflect present realities as seen in other climes should be considered by the government.
The CSO also advocated the issuance of a circular by the Federal Inland Revenue Service (FIRS) to officially extend the date of returns and to waive all penalties on late filing of VAT, PIT/PAYE, WHT, CIT and CGT.
This is even as it is believed that there should be suspension of all consumption taxes by the Joint Tax Board (JTB) in conjunction with state governments, adding that “government is encouraged to consider paying stipends to workers, registered small businesses and individuals with valid accounts for this period.”
The group raised concerns on the level of commitment of government agencies to fair distribution of palliatives to the masses, pointing out that to ensure that the already donated funds by governments, agencies and the private sector are accounted for and used judiciously, the government should improve on its accountability measures to the citizens. It urged governments at all levels to make public all funds released for the fight against COVID-19 as well as how the donations would be applied.
According to the group, governments will be expected to provide all the details of the COVID-19 disbursements in the public domain using available technological tools and media platforms as well as increase accountability and transparency measures in its COVID-19 intervention funds utilisation.
It is also expected to promote equal and improved healthcare interventions for victims of COVID-19, and improved response of government towards equitable distribution of relief materials to citizens especially at rural and semi-urban households.
“There should be inclusion of civil society actors in the various COVID-19 task forces across board to strengthen transparency, accountability and diversity in the process. There must be decentralisation of the task forces to meet geopolitical needs”, it stated.
