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Taiwo Oyedele, partner, West Africa Tax leader, PwC, has expressed optimism that the Nigerian government at various levels can achieve a globally competitive economy through improved taxation.
The tax expert, while speaking at the just concluded Chartered Institute of Taxation of Nigeria (CITN) annual conference, said political office holders and administrators in the country must prioritise issues on taxation to build a vibrant economy.
“It is not out of place if they ensure bulk of their revenue for state spending comes from taxation. Taxation has a way of connecting the government with the governed, and this is one of the easiest way to grow people’s confidence in transactions,” he said.
According to Oyedele, “To make Nigeria more competitive, we have to have to build our economy focusing on infrastructure, mainly on power and transport. Also, the speedy implementation of tax policy must be prioritised as well as ensuring ease of doing business deliver on expected results.”
Speaking further, he said, “The government must be willing to invest $3 trillion into infrastructure development over the next 30 years. Leverage public-private partnership, investments funds and other guarantee arrangements to optimise infrastructure.”
He stated the Federal Government must be willing to tackle constraints around governance, funding, legal, regulatory, pricing and sabotage.
He pointed out that, “Rail projects have been signed off and 85 major roads projects are ongoing and concession process for the four major airports underway, as proper monitoring mechanism is key in ensuring that MDAs deliver on the expected projects with corresponding contractors.”
The Federal Government cannot achieve much of these feat if there is no appreciable progress made to improve taxation in the country, he said, saying, “Recent statistics put Nigeria’s tax to GDP ratio at 6 percent, which is one of the lowest in the world. Essentially, tax’s contribution to the economy is low.”
Country comparison shows that Botswana’s Tax to GDP ration is 35.2 percent, Belgium is 47.9 percent, Canada is 39 percent, Denmark is 50 percent, Finland is 54 percent, Sweden is 50.5 percent, etc.
While lauding the efforts and some of the reform initiatives put up by the government to advanced taxation, he said, the Federal Government must sustain its effort through robust systems, structures and institutions that sustain these initiatives.
“The government’s reforms through Voluntary Assets and Income Declaration Scheme (VAIDS), and other initiatives are key in solving so many of our challenges and ensuring proper social inclusion through strategic social services,” he said.
