The Supreme Court’s decision upholding local governments’ financial independence in Nigeria has been warmly received by the Chartered Institute of Taxation of Nigeria.
The institute praised the decision in a statement signed by its Acting Registrar/Chief Executive, Afolake Oso, on Monday, according to The Punch.
Oso said that the supreme court’s decision will spur better development and governance at the local level.
“Above all, this will promote fiscal federalism and true autonomy at the subnational level thereby enhancing delivery of democratic dividends to the populace,” the CITN statement stated.
The institute also tasked the Local Government chairmen with judicious use of resources coming to them.
“It is also a call to service for leadership at the various local councils as they will have greater control over the resources of the Local Government thereby, allowing for structured planning and development.
“More than ever before, more accountability, prudence and transparency is required from the players at the local level, toward ensuring judicious use of resources for prompt payment of salaries of workers, provision of health and social services, educational facilities, and infrastructural development, among others,” the institute noted.
In addition, it stated that this development should encourage the chairmen of local governments to discontinue using touts to collect taxes.
“As an institute devoted to promoting a professionalised tax system, we expect that this development will curb the unwholesome and uncivilised practice of touting and using non-state actors in revenue collection at the Local Governments, which arises from an unstructured political and ineffective tax system. This practice, though aimed at augmenting poor revenues, leaves the system very inactive,” CITN said.
Recall, The Supreme Court on Thursday ruled it illegal for state governors to retain monies designated for Local Government administrations.
The court further ruled that a local government could only be recognized in conjunction with a democratically elected government, and that a state government lacked the authority to designate a caretaker committee.
