CITN cautions members to avoid counterproductive policies and actions
By Olusegun Obisanya
The President, West Africa Union of Tax Institutes, (WAUTI), Dame Olajumoke Simplice has advised professional members from countries that make up WAUTI that in fashioning appropriate fiscal measure for their respective countries post COVID-19 era, they should be futuristic and avoid policies and actions that would be counterproductive on the long run.
She stated this at the opening ceremony of the two-day 7th international tax conference of the West African Union of Tax Institutes held on Thursday in Lagos, where Kebbi State Governor, Abubakar Atiku Bagudu, delivered the keynote address and declared the annual international conference opened.
At this year’s conference, the theme projected was, “Designing and implementing tax measures for the COVID-19 era and beyond.” Among other topical issues, the conference, according to her, will examine the African Continental Free Trade Area Agreement (AfCFTA) since its commencement in January 1, 2021 and highlight the salient issues yet to be addressed and the possible measures to facilitate Africa’s regional integration, trade facilitation, investment promotion, movement of people, and elimination of tariff and non-tariff barriers.
Simplice, who also doubles as CITN President and Chairman in Council explained that the theme was chosen in consideration of the distortion caused by the outbreak of COVID-19 has had on the political, economic, social, religious and financial structures of the world. She observed that sectorial recovery is not restricted to developing or emerging economies alone but the developed nations of the world have had their fair shares “with uncertainty still widespread”.
WAUTI President said, “Across countries of the world, health care systems have virtually collapsed while economies are on the precipice. According to the World Bank, “emerging market and developing economies will be buffeted by economic headwinds from multiple quarters: pressure on weak health care systems, loss of trade and tourism, dwindling remittances, subdued capital flows, and tight financial conditions amid mounting debt
“It is against this background that we will review policy initiatives in the past, the challenges encountered in the West African Countries, analyse the impact of the COVID-19 and explore the ways out for the development of our countries and growth of the economy. Expectedly, most countries have enunciated a number of measures to mitigate the impact of COVID-19 on their economies. These measures range from; rebates in tax payments, payroll support to small businesses, social safety nets to cater for low-income earners and the unemployed to mention but a few.
In his presentation, titled, “Effective tax measures for the COVID-19 era and post-pandemic new normal, a Ghanaian tax policy expert, Dr. Abdallah Ali-Nakyea said Covid-19 pandemic has impacted the world adversely in many ways than could have been imagined, adding that the pandemic and the measures taken to combat it will have a significant impact on both the global economy.
He said, “It has been predicted by economists that most major economies will lose at least 2.4 per cent of the value of their gross domestic product (GDP) over 2020. The International Monetary Fund (IMF) projects global growth will be below 2.9 per cent and Africa is projected by UNECA to have its growth drop by 1.4 percentage points. Global stock markets have suffered dramatic falls due to the outbreak, the airline industries, oil prices, trade relations, health and virtually all facets of the global economy has taken a hit. This is worsened the more due to measures of social distancing being implemented in various forms by various countries.
“Businesses generally have cash flow problems since most activities have either come to a standstill or slowed down. Hence, it is important for entities to optimize their tax obligation to survive. Under the current economic pressures, taking advantage of the reliefs would go a long way to decrease the burden on businesses. Tax measures post Covid-19 should be targeted at recovery of our economies. Plugging more feathers from the goose with little hissing.Digitalization of revenue institutions is key to compliance and monitoring.”