CITN hails Supreme Court judgment

The Chartered Institute of Taxation of Nigeria has welcomed the Supreme Court verdict affirming the financial autonomy of Local Governments in Nigeria.

This was indicated in a statement signed by the minister of Acting Registrar/Chief Executive, Afolake Oso, of the CITN on Monday.

Oso said that the apex court’s ruling will drive improved governance and development at the grassroots level.

“Above all, this will promote fiscal federalism and true autonomy at the subnational level thereby enhancing the delivery of democratic dividends to the populace,” the CITN statement said.

The CITN also charged the local government chairmen to ensure the 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 are 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, infrastructural development amongst others,” the statement partly read.

The institute went further to state that the development should spur the LG chairmen to put an end to the use of touts for revenue collection.

“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, although aimed at augmenting poor revenues, leaves the system very inactive,” CITN said.

The Supreme Court on Thursday declared it unconstitutional for state governors to hold funds allocated for local government administrations.

The court further declared that a state government has no power to appoint a caretaker committee and a local government council is only recognisable with a democratically elected government.