CITN seeks collaboration with CBN, FIRS on implementation of eNaira Roadmap

 

CITN seeks collaboration with CBN, FIRSon implementation of eNaira Roadma

 

The Chartered Institute of Taxation of Nigeria (CITN) has called for a synergy with the Central Bank of Nigeria (CBN), Federal Inland Revenue Service (FIRS) and State Inland Revenue Service (SIRS) on implementation of the eNaira financial system Roadmap.

Mr Samuel Okoye, a Fellow of the Institute, made the call while making a paper presentation at the CITN 2021 Business Luncheon on Wednesday in Lagos with the theme: Digital Currency Technology and e-Naira: Nature and Implications for Taxation.

Okoye said that FIRS and SIRSs need to work with the CBN for the possibility of developing an Application Programming Interface (API) which issues the BVN and TIN of taxpayers in order to extract the e-Naira wallet transaction log for relevant periods.

According to him, FIRS and SIRSs would need to work with the CBN to achieve special alignment in the implementation phases for tax administrative purposes, explaining that if the roadmap is to stay the way it is, FIRS and SIRSs will need to come up with clear communication to taxpayers and the relevant members of the public that may come to be affected with taxable transactions conducted in eNaira.

“From currency perspective, as the eNaira is the same as the physical Naira in every way except in tangibility, there are only tax implications which would need to be proactively dealt with by FIRS and the CBN for clarity and swift tax administration. It is less of taxpayers baggage the way it stands.

“From the eNaira Design and Architecture perspective, there is need for synergy between the FIRS/SIRSs and the CBN to deal with the tax audit and investigation implications that will be associated with e-Naira wallets,” Okoye said.

Speaking, Mr Musa Jimoh, the Director, Payment System Management Dept. CBN, said that the use of cash was declining both locally and globally, as digital payments were rising significantly

Represented by Mr Chai Gang, a managing partner of the Bank, Jimoh said that 90 per cent of Central Banks were now considering Central Bank Digital Currencies (CBDCs) – eNaira.

According to him, Nigeria is basically following an irreversible global trend as overwhelming majority of Central Banks across the world have started to consider issuing digital currencies in order to cater for businesses and households seeking faster, safer, easier and cheaper means of payments. In fact, a handful of countries including China, Bahamas, and Cambodia have already issued their own Digital Currencies.

He listed some of the objectives of a CBDC/e-Naira for the Nigeria Economy to include Financial inclusion, Reduction in cost of cash management, increase in the payment system efficiency, increase in the tax base thereby improving government revenue collection, improved Monetary and Financial stability policies and poverty reduction, among others.

In his keynote address, the Senate President of the Federal Republic of Nigeria, Sen. Ahmed Lawan, appreciated CITN for organising the Business Luncheon, urging the Institute to continue in efforts to promote Nigeria taxation system.

Represented by Prof. Nasifi Abdulahi, Special Adviser to the Senate President on Economic Matters, Lawan said that digitalisation is the right way to go, expressing optimism that it would boost taxation practice in the country.

The Senate President, said that the business luncheon was apt, noting that the outcome will go a long way in proffering lasting solution to challenges in the nation’s taxation system.

The CITN President, Mr Adesina Adedayo said that the session was instituted by the Institute to create an avenue to enable stakeholders deliberate, interact and discuss issues centered on taxation and other national issues in line with our statutory responsibilities as a professional Tax Institute chartered by law to promote the practice of taxation in the economic development of our dear nation, Nigeria.

According to him, tax system is the veritable means of growing and developing the economy of any nation in the world, saying that taxes are the only sustainable source of generating revenue for government to fulfil its obligations to the citizens and to promote fiscal development.

He said, “objectives of this programme which include:

To review government policy decisions and its potential impact on the economy and the tax system;

To provide a feedback mechanism for policy makers and government and

To provide an opportunity to interact with corporate business leaders, policy makers, members of the organized private sector and professionals.

“It is therefore, pertinent to inform you that the outcome of our deliberations will be articulated as a position paper to the government and relevant stakeholders as input to policies formulation”.