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Taiwo Oyedele, partner West Africa Tax Leader has expressed optimism that the Nigerian government at various levels could achieve a globally competitive economy through improved taxation.
The Tax expert while speaking at the on going Chartered Institute of Taxation of Nigeria,CITN,annual conference said the Political Office holders and administrators in the country holders must prioritise issues on taxation in the country to building 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 one of the easiest way to grow people’s confidence in transactions”
According to Taiwo:”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 priortised,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 ib Public Private Partnership,investments funds and other guarantee arrangements to optimise infrastructure”
He stated further that 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 seinged off anf 85 major roads projects are ongoing and concession process for the 4 major airports underway,as proper monitoring mechanisms is key in ensuring that MDAS deliver on the expected projects with corresponding constractors”
Taiwo,notably pointed out that the federal government cannot achieve much of these feat is there is no appreciable progress made to improve taxation in the country.
“Recent statistics put Nigeria’s tax to GDP ratio at 6% 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%,Belgium is 47.9%,Canada is 39%,Denmark,50%,European Union 35%,Finland 54%,Sweden is 50.5 %.
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 it’s effort through robust systems,structures and institutions that sustains these initiatives.
“The government’s reforms through Voluntary Assets and Income Declaration Scheme,VAIDS, and other intiatives are key in solving so many of our challenges and ensuring proper social inclusion through strategic social services”he adds further.
HARRISON EDEH, ABUJA
