The president of the Chartered Institute of Taxation of Nigeria, Mr. Samuel Agbeluyi, has cautioned against granting tax holidays based on political patronage, stressing that it could have adverse effects on the country’s economy.

Agbeluyi made this assertion during a press briefing ahead of the institute’s upcoming 26th annual tax conference, slated to hold at the Abuja Chambers of Commerce and Industry from May 13 to 17.

The conference’s theme, ‘Sustainable Tax Culture And Economic Roadmap For Nation Building,’ underscores the importance of taxation in nation-building efforts.

Highlighting the significance of tax revenue, Agbeluyi emphasized its role as the most sustainable means of financing government activities.

He noted that successful economies worldwide rely on taxes as a stable source of income, emphasizing the need for prudent utilization of collected revenue to bolster citizens’ trust in the tax system.

Regarding tax holidays, Agbeluyi underscored their potential misuse when granted based on political considerations.

He cautioned against such abuse, advocating instead for strategic allocation of incentives to companies contributing to the country’s development agenda.

He stated, “Another aspect of taxation involves providing tax holiday windows to strategically important companies that contribute to the developmental programme in the country.

“However, abuse of such incentives should be avoided at all costs since giving out tax incentives based on political patronage can have adverse effects on the economy. Instead, authorities must look into areas where development is needed and determine if they have resources available or needed.”

While acknowledging the importance of attracting investors through tax relief, Agbeluyi stressed the need for prudence in implementing such measures. He suggested directing incentives to areas requiring development, ensuring optimal resource allocation for maximum impact.

Agbeluyi commended President Bola Tinubu’s efforts to streamline Nigeria’s tax system and prevent excessive taxation.

He expressed optimism that Tinubu’s initiatives, coupled with support from political leaders across branches of government, would revolutionize the country’s tax regime.

The upcoming CITN conference aims to convene stakeholders to address unresolved challenges in Nigeria’s taxation system.

Notable attendees include former Governor of Ogun State, Senator Ibikunle Amosu, as well as governors from Jigawa and Plateau States.

Babatunde Fowler, former executive chairman of the Federal Inland Revenue Service, and industry experts will also participate, facilitating discussions on improving Nigeria’s tax landscape for mutual benefit.