PricewaterhouseCoopers, PwC, has rated Nigeria’s tax contribution to Gross Domestic Products, GDP, lowest in the world.
PwC’s partner/head, Tax Regulatory Services, Mr. Taiwo Oyedele stated this while giving an overview of the tax environment globally at a Taxation Roundtable organised by the Lagos Chamber of Commerce and Industry on Tuesday.
“Nigeria’s tax contribution to the GDP is the lowest in the world compared to United States 19 percent; China 21ppercent and Japan, tax contributes 35 percent. Similarly, he said that in Germany tax accounts for 45 percent of GDP, France 52 percent, Ghana 22 percent; South Africa 27 percent and Kenya 17 percent,” Oyedele said.
He said proactive tax risk management and continuous tax risk assurance should be the mantra of every forward looking tax function.
Also speaking at the event, Executive Chairman, Federal Inland Services, FIRS, Dr. Babatunde Fowler, disclosed that FIRS has identified several opportunities to improve their collaboration with taxpayers especially in the area of data and knowledge sharing and stakeholder engagement.
“We recently appointed state coordinators to cover a maximum of three states to bring tax administration closer to the people and reduce span control. We also recently commenced a policy giving taxpayers an opportunity to choose a tax office nearest to their place of business for their tax affairs,” he stressed.
The president of LCCI, Chief Nike Akande, noted that taxation has been a major source of revenue for the nation in the past decades and given the severe revenue challenges faced by governments at all levels as a result of the shape drop in oil price; the focus of government on taxation has been increased.
“We will situate the current drive for tax revenue and internally generated revenue by the state governments in the context of current investment environment challenges.
Ensuring a balance on these issues is worthy of engagement with tax authorities. ”In the light of these developments, it has become necessary to bring stakeholders together to share perspectives on the current status of the Nigerian tax system as well as educate and enlighten business owners on proper documentation for taxation,” she said.