Tax Reform: Economist Warn Against Loss Of Bank Customers’ Confidence
An Economist, Prof. Chris Kalu,has called on the federal Government to carry out a massive enlightenment on the new tax regime.
Kalu, a lecturer in the Department of Economics, Nnamdi Azikiwe University, Awka, made the call in an interview with journalists in Awka
The Financial and Development Economics Expert said this was necessary to forestall adverse economic effects.
He said the new tax system which was largely bank-based needed to be well explained to payers, especially bank customers, to assure them that their transactions and deposits were safe.
The Economist said if the uncertainties were not well addressed, it could be subject to abuse by the banks and trigger apathy or bank-run.
He said every policy including tax came with its burden and blessing but the success or failure of such policies depended on how well the government communicated them.
“The new tax policy took effect on Jan. 1 but up till now, not many people know what is taxed, how they are taxed and what they are supposed to pay.
“Government has not been able to enlighten Nigerians about the new tax regime even though they have all the tools including the ministry of information and communication, national orientation agency and the media to do that
“There are arguments about which tax law is being implemented between the one approved by the National Assembly and the one signed, it is important to know this so that people will know what tax brackets and tax rates.
“The effect of this uncertainty is that people may feel that their money in the bank is not safe, it is also subject to abuse and arbitrary deductions and what this means is that they may be a bank run,” he said .
Kalu said taxes were civic responsibilities which must be matched with quality delivery of social services on the part of the government.
He said fiscal policies were crucial to any economy and had the potential of sending unanticipated shocks if not well managed.
