From Femi Oyelola, Kaduna
People entrusted with governance in the country have been warned to stop mixing politics with governance if they are serious of removing negative consequences which are derailing of the economy.
A resource person at the Technical Session titled Alternative Model On Restructuring – Taxation, a Tool for Economic Diversify and Good Governance’ Friday Ameh Agbo disclosed this in a lecture held in Kaduna yesterday.
He , stressed that governance should be based on accountability.
“Process of governance should have only little politics if not it will derail and the economy and everyone suffers,” he said.
He explained that several studies conducted show that their is problem of governance in Nigeria.
He explained that systemic solutions to problems facing the country include, political economy, synergy, good governance, and a host of others.
“Everything revolves around good governance and those in charge should explain his they use resources,” he added.
He explained that components of good governance include accountability, following rule of law, ensures corruption is minimised and views of minority taken into consideration.
Speaking further, he suggested that whichever model of restructuring is chosen for Nigeria must put the components into consideration.
Still on restructuring, he said that diversity should be a strength in Nigeria, not a disadvantage.
He further posited that taxation is a tool that Nigeria can use and stand as an index to breach the gap in governance.
“Tax is seen as a source of generating revenue for government. Tax can also serve as a tool for economic planning. Two tax elements that can reposition as economic tools are value added tax and withholding tax.
“Value added tax collected at point of sales. can be used to capture all the economic activities in Nigeria,” he said.
He further suggested that the restructuring should make VAT Input 0%, while VAT output should be set at between 0.01 per cent to 5 per cent.
“VAT output should be attributed to LGAs because they are closest to the economic activities and resources.
“All withholding tax (company income tax) should be attributed to the Federal Government,” he said.
In his remarks, Olaitan Adegoke who served as the moderator said that It is when you have a structure on ground not meeting the desires and aspirations of the people, that they begin to clamour for restructuring.
“Everyone seems to look at restructuring the way it pleases him. It is like different people touching an elephant. The person that touches the head will describe it differently from one that touches the tail,” he added.
He said that politics that is not talking about the economy is not favourable and people will begin to groan as a result of hardship
Adegoke, who also served as the Chairman of the session, said that excessive tax is harmful to economy, just as little tax will also harm economy.
Some of the facilitators are Dahiru Mohammed and Mike Odeholonta
It was organised by Alter Consult, a firm that engages in financial and management consultancy.
It had in attendance, representatives of the Peoples Democratic Party (PDP) Presidential aspirant and representative of the ruling All Progressives Congress (APC).