The New Experience Newspapers Online News Indepth, Analysis and More
Chairman of United Bank of Africa (UBA) Tony Elumelu has canvassed the need for government to expand its double taxation treaties with foreign missions and embassies, among others to increase its revenue base.
He said Nigeria has only 14 double taxation treaties with other countries when South Africa has 80 taxation treaties despite the numerous foreign missions, Embassies, high commission in almost all the countries of the world that the country should be having treaties with
Elumelu, who was keynote speaker at the ongoing 21st annual conference of the Chattered Institute of Taxation of Nigeria (CITN), said the government does not understand the benefit and implication of treaties for national development.
He pointed out that to achieve a progressive, efficient and effective tax regime in the country, there was the need for government to look into the double taxation treaties with other countries in other to expand Nigeria’s revenue base.
He lamented that Nigeria’s tax to Gross Domestic Product (GDP) ratio is at 6 per cent, while Rwanda with a population of about 10 million people has a tax to GDP ration of 16 per cent
He noted that with the size of Nigeria’s economy of about $400b if the tax ratio increased to about 10 per cent, which is about $40b and the foreign reserve is about $44b, it would help capitalize the government to deliver on its campaign promises.
Elumelu noted that business survey carried out by the World Bank on Nigeria Businesses revealed that the country ranked 157 position out of the 190 countries that was ranked as the worst tax payers as the survey revealed that about 48 taxes are paid by an average country, compared to an average of 37 in sub-Saharan Africa and 3 in Hong Kong.
He lamented that most multinational companies are relocating from Nigeria to Ghana and companies that want to move into the country are discouraged, attributing it to the fact that an average business owner in Nigeria is a local government on its own as they have to provide their water, electricity, handles waste disposals among others.
