HOW AUTOMATED TAX PAYER ID NUMBERS CAN RAISE REVENUES, HELP BUSINESS’ BOTTOM-LINES & REDUCE BUREAUCRATIC CORRUPTION – VP OSINBAJO
“The ultimate outcome is increased revenues for governments and the ease of doing business for business owners, who must be registered and have an identification number. This helps to fund investments in infrastructure, social investment, human capital development and more.” – Osinbajo
REMARKS BY HIS EXCELLENCY, PROF. YEMI OSINBAJO, SAN, GCON, VICE PRESIDENT OF THE FEDERAL REPUBLIC OF NIGERIA AT THE GO-LIVE CEREMONY FOR THE NEW NATIONAL TAX IDENTIFICATION NUMBER REGISTRATION SYSTEM, ON MONDAY, 1ST JULY 2019
I am delighted to be here with you this morning, at the launch of this historic system and event itself, the new National TIN Registration System.
The world is constantly changing, and along with it, the accepted ways of doing everything, including the management of economic and financial systems.
As international boundaries dissolve under the reality of a globalizing world, and as financial and economic activities increasingly transcend geographical limitations, tax administration itself, must of necessity continually adapt.
Tax administration is built around data – without credible and comprehensive data, an efficient tax system would be an impossibility.
To function optimally, tax systems have to be aware of important statistics such as numbers of eligible individuals and businesses, volume of economic activity, and then design and implement strategies to take advantage of these available data are also crucial.
This is where the need for proper identification of eligible taxpayers whether they be individuals or corporate bodies, comes in. A Tax Identification Number (TIN) is a vital instrument to uniquely identify, as well as, register new taxpayers and bring them into the tax bracket.
The drama team (which had put up a skit) did an excellent job of explaining just how important this is for every type of business, to come into the tax bracket which makes life easier for anyone doing business, whether local or international.
It gives the managers of the national tax administration systems the capacity to conveniently and efficiently access and connect information from multiple sources. It forms the basis for projecting future revenues and for making realistic expenditure plans for governments.
This new TIN Registration System will utilize existing data from a variety of authorized identity management agencies, and help build a database that is reliable and verifiable.
To elaborate more on that, what we have at the moment is data from Corporate Affairs Commission, Identity Management Systems and TelCos. All of that data is relevant for tax purposes and what it does is to bring all the data together in one particular system which is through our tax identification number.
The ultimate outcome is increased revenues for governments and the ease of doing business for business owners, who must be registered and have an identification number. This helps to fund investments in infrastructure, social investment, human capital development and more.
I am pleased to note that this new initiative aligns fully with the Federal Government’s strategic objectives as outlined in the Economic Recovery and Growth Plan (ERGP) and all the other documents which are meant to power Nigeria’s economic development.
Mention must also be made of how this new TIN system supports our Ease of Doing Business ambitions for Nigeria. The increased automation of tax systems frees up room for businesses, small and large to thrive, away from the strictures of unnecessary bureaucracy. This reduces the possibilities of indiscretion and petty corruption with people asking for money.
An easier operating environment will have positive implications for corporate bottom-lines with the expected positive impact on tax revenues.
What we seek to achieve is to attract business, not just international business, but even more importantly, local business. It is local investment that delivers the local economy the most, and if it’s easy for the local person to do business, it becomes even more attractive for international businesses to come into the country.
In the light of the foregoing, all agencies critical to the optimal success of this initiative; the Central Bank of Nigeria (CBN), the Nigeria Interbank Settlement System (NIBBS), the National Identity Management Commission (NIMC), have all been directed by President Buhari to provide the fullest co-operation to the JTB, especially in the release of the relevant individual records.
The Joint Tax Board led by its chairman, Mr. Tunde Fowler, all the partners and stakeholders who have made this possible, deserve our commendation for this giant leap. The Nigerian business and economic environment are better for your hard work and continuous innovation. Congratulations!
It is now my special pleasure to proceed to the official launch of the new National TAX Identification Number Registration System.
Thank you very much for listening.