[November 20, 2009] Why New Tax Laws Are Necessary - Governors Tweet Abuja, Nov 20, 2009 (Leadership/All Africa Global Media via COMTEX) -- The 36 state governors have risen in defence of new tax laws for the country, saying it is the only way by which the state and nation's revenue profile can be significantly boosted. This, according to the state chief executives, will address the dwindling fortunes of the states and make more internally generated resources available. This was part of the decisions taken at the end of the 1st National Round-table Strategy Session on Internally Generated Revenue (IGR) organised by the Nigerian Governors' Forum (NGF), which took place in Abuja. The govenrors also agreed that they would meet the Tax Identification Number (TIN) obligation of their states by paying their counterpart funds, increase taxpayers' awareness and generally sensitise the populace through the awareness drive, as well as design appropriate policies to integrate the informal sector into the mainstream of their economy. They observed the need to "explore and identify alternative sources of revenue so as to forestall the dire consequences of over-dependence on oil and attain fiscal autonomy." The governors, according to the 14-point communique made available to the media at the end of the seminar, also expressed concern over the dwindling revenue base of the federal, states and local governments which they attributed to fluctuation in the price of oil. The governors further agreed to ensure that they create the enabling environment for investments in their various states geared towards encouraging investors with the resultant effect of increasing revenue sources available to their governments. The governors called for the urgent need to use experts in the collection of taxes and strengthening of tax collection machineries, noting that regular dialogue with banks and financial institutions was also necessary as it would help check under- remittances or delay in remittances. All stakeholders, the governors also said, must work in harmony as part of moves to build the revenue base of the country. They also called for workable strategies that would enhance the identification and prioritisation of alternative revenue generating channels, as well as that all stakeholders participating in the administration of taxes in their respective states. Another recommendation was the need for reliable databases of taxpayers that would assist policy makers and tax experts in assessing major changes to the tax system, encourage and transform Inland Revenue Services in their states by "building more proactive, less reactive and intrusive, relationship with communities." [ Back To TMCnet.com's Homepage ]