For the country to attract investors and generate more revenue, Stransact, Nigeria’s correspondent firm for the sixth largest international accounting firm, RSM Network, has charged the incoming administration to oversee critical reforms to move the economy forward.
General Partner, Stransact, Eben Joels, said this during a media engagement, noting that the challenges of foreign exchange (FX) should be among the reforms the next administration urgently address as it affects investors and businesses.
He said since Nigeria operates an open market economy, the market forces should decide what the exchange rate should be and not the monetary authority deciding it by fiat.
He lamented that the FX window in the country is being operated as a major door to corruption in Nigeria.
Joels, who spoke on ‘Reforming Nigeria’s Tax Environment for Economic Growth, Opportunities for the New Government’, said while the government seeks to maximise revenue generation, the burden of multiple taxations should be reduced on taxpayers.
He said rather than the government taxing businesses, it should ensure businesses are regulated to improve the welfare of the citizens.
He urged the Federal Inland Revenue Service (FIRS) to make compliance easier for businesses and taxpayers, advising that the new tax Promax by the agency should neither be a burden to taxpayers nor erode their rights under the law.
Buttressing Joels’ comments, Partner, People and Regulatory, Yomi Salawu, said rather than increasing taxes to the already-burdened businesses, the government should expand the tax net.
Noting that Nigeria has the highest number of taxes globally, he urged that taxpayers’ monies should be utilised through the provision of basic amenities such as good roads, good policing and better healthcare services, among others.
According to him, these will attract people into moving across states and will increase states’ Internally Generated Revenue (IGR).
Also corroborating Joels, Partner, Tax Services, Victor Athe, advised that while widening the tax net, the government should go about formalising the informal sector.
He said: “Nigeria should fix its reputation for corruption and accountability, as well as reduce appetite for borrowing. Adhering to this will improve our credit rating as a nation and as we borrow at a lower cost to pay our debts. Credit is driven by ratings. Increasing taxes increases our reputation for corruption.”
