A recent news report found that customers still perceive the National Bureau of Revenue (NBR) offices to be corrupt and avoid them for the fear of being hassled for bribes.
This paints a troubling picture of a widespread systemic problem that can undermine the government’s recent initiatives to enlarge the tax base and introduce modern processes.
Taxpayers have alleged that the zonal and circle offices of the NBR are rife with corruption and bribes are regularly demanded for tax related services. Moreover, citizens are much more likely to use stationary or accessory shops and cyber cafes to register their Electronic Taxpayers Identification Number (eTIN) rather than use the NBR offices.
The fact that citizens are reluctant to use the NBR offices even for registration purposes bodes poorly for the prospects of tax collection. This also shows that deep systemic issues, such as widespread corruption and lack of accountability of tax officers can continue to undermine all efforts to modernise the tax system.
The ability of the government to collect tax revenues is crucial for the development of the country and achieving self-sufficiency. The eTIN system was embraced enthusiastically by many, with a large number of registrations within the first three months. This demonstrates that a sizable portion of the population is willing to pay their due taxes if a proper system is put in place.
It is now up to the government to ensure that corruption and mismanagement is eliminated at the NBR so that the country can have a functioning taxation system that drives its development.