Strategic Report – Dept. of Finance, Nigeria

In our comprehensive consulting report for Dept. of Finance, Nigeria, we have strategically addressed the imperative of enhancing revenue generation and tax collection efficiency. Our analysis delves into the valuation of overall potential, highlighting challenges such as non-registration, delayed filing, and evasion tactics. To fortify tax collection efficiency, we advocate for streamlined processes, simplified taxation procedures, online payment capabilities, and an amplified tax ambit.
In the pursuit of elevating revenue collection, the assessment of overall potential stands as paramount. Taxpayer compliance and economic conditions intertwine to mold revenue outcomes. Challenges include non-registration, delayed filing, inadequate record-keeping, and evasion tactics. The multifaceted task requires tackling these challenges holistically, aligning strategies with prevailing socioeconomic realities.
Steps to be Taken
In pursuit of enhanced revenue generation, a cohesive strategy emerges, uniting diverse elements:
• Comprehensive Database: A centralized and accurate taxpayer database, aligned with assessment and collection systems, must underpin revenue collection, thereby broadening the taxpayer base.
• Full Automation: The evolution towards fully automated assessment and collection systems holds transformative potential, alleviating operational bottlenecks.
• Harmonization: Streamlining tax collection by State MDAs and LGAs ensures consistency and efficiency across regions.
• Integrated Tax Administration System (ITAS): The acquisition and operationalization of ITAS, linking a central database with Taxpayer Identification Numbers (TINs), heralds a new era of accuracy and accessibility.
• Presumptive Tax: Exploring a presumptive tax for small informal traders’ nurtures inclusivity while curbing evasion.
• Standard Tax Rates: Tailoring standard rates for specific sectors of individual taxpayers simplifies compliance and encourages genuine disclosures.
• Expert Review: Engaging professionals to scrutinize assessments by revenue collection MDAs enhances accuracy and fairness.
• Stakeholder Engagement: A high-level dialogue with diverse stakeholders fosters collective ownership and strategic alignment.
• Continual Education: A proactive and ongoing taxpayer education program fosters awareness, driving voluntary registration.
• Operationalization of TIN: The full implementation of Taxpayer Identification Numbers amplifies accountability and tracking.
• Holistic Automation: Enabling full automation for assessment and collection systems propels efficiency and expediency.
• New Revenue Avenues: Venturing into non-tax revenue sources, such as private healthcare facilities, patent medicine stores, and tourism, diversifies income streams.
The synergy of these steps ensures a comprehensive and dynamic approach to revenue generation, positioning the system for sustainable growth and efficacy.
The report outlines a series of strategic steps, including the establishment of an Integrated Tax Administration System for Dept. of Finance, sector-based standard rates, and expert assessment, all underpinned by stakeholder engagement. Furthermore, our opportunity analysis unveils untapped potential, while proposing innovative non-tax revenue sources. This holistic approach encapsulates our commitment to reshaping revenue ecosystems for long-term sustainability and effectiveness.