Michael Eboh
25 September 2007
Lagos — The World Bank and the United Nations Development Programme (UNDP) have condemned Nigerian's tax regime, associating it with the low level of investment and economic development currently witnessed in the country.
Speaking at the First New Partnership for African Development (NEPAD) Business Group Nigeria's (NBGN) luncheon in Lagos on Friday, Dr. Hafez Ghanem, the country representative of the bank disclosed that the incidence of multiple taxation in the country has negatively impacted on the growth of the economy. He said, "The tax burden on Nigerian business is internationally competitive, but the burden of administration and the method of collection is one of the worst in the world. Multiple taxes levied by the three tiers of government have also resulted in a proliferation of taxes, some of which are illegal."
He stated that the integrity of the country's tax system has been put in question due to the predatory behaviour of some tax officials and private tax consultants, leading to investors become disinterested in the economy. He called for a concerted effort from all the tiers of government led by the Joint Tax Board in the appraisal and implementation of the Federal Government's tax policy, addressing the issue of multiple taxation and abolishing illegal taxes among all the tiers of government.
He advocated the computerisation of all the tax processes, the training and strengthening of personnel handling tax issues and sensitising the public on what taxes are payable and to whom it should be paid. "Instituting a mechanism, including clear performance targets for private sector monitoring of tax agency performance, would empower the private sector to demand better performance from tax agencies and officials," he added. His views were corroborated by Mr. Alberic Kacou, Resident Representative of the UNDP, who stated that multiple taxation has made the cost of doing business in Nigeria very high. He stated that multiple taxation is a major disincentive both to local and foreign investors who want to put their money in the economy. He called on the Federal Government to tackle the issue once and for all if it hopes to achieve its vision 2020 goal and also the Millennium Development Goals (MDGs).
In his remarks. the former Secretary-General of the Commonwealth, Chief Emeka Anyaoku decried the current growth of the Nigerian economy, declaring that it is not commensurate with the enormous resources at its disposal. He attributed the slow growth rate of the economy to corruption in the public and private sector. "Material and moral corruption has eaten deep into the fabric of the nation. It has hindered the high growth rate that is supposed to be achieved with the enormous resources at the disposal of the country, to this end Nigeria is now a living paradox: a rich country with poor citizens," he added.
He noted that if Nigeria is to achieve its goal of been among the 20 strongest economy in the world in the year 2020, as outline in the vision 2020 document, it should effectively tackle the issue of corruption. He called for the strengthening of the anti-corruption mechanism, such as the Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices and Related Offences Commission (ICPC), the Police among others, in line with the rule of law, so as to enable them fight the menace to a standstill.
He urged all public figures and people in authority to join in the fight against corruption by living exemplary lives. He further called for the creation of a conducive environment so as to attract and sustain the much needed foreign and local investment.
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