Chairman of the Federal Inland Revenue Service (FIRS), Mr. Muhammad Nami, has remarked that there would be a higher tax compliance rate when citizens see what is being done with their money. The Chairman, speaking recently at the launch of the Public Finance Database by the Nigeria Governors’ Forum in Abuja, mentioned that the failed Social Contract between governments and taxpayers is largely to blame for the low tax complicate rate in most developing countries.
“Taxpayers need to see what has been done with their money to be encouraged to continue to pay their obligations under the Social Contract they have with the government”, Mr. Nami said. He also expressed delight about how one of the sessions of the Finance Database launch was focused on the tax-for-service programs as they impact revenue. There is, according to Mr. Nami, a nexus between the effective utilization of tax revenue and tax compliance.
The FIRS boss also stated that projects financed by tax revenue should be made known to the public as such. Tangible results like these would encourage taxpayers to further perform their tax obligations. Mr. Nami stated that “The government at all levels is doing a lot with taxpayers’ money but citizens do not easily appreciate these facts because of the way and manner the projects are reported.”
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