Experts Urge FG to Boost Tax-GDP Revenue Through Digital Strategy  

Oluchi Chibuzor

For the country to increase its tax-to-Gross Domestic Product ratio figures and block economic leakages, tax experts have urged the federal government to produce a clear digital strategy to unlock tax administration in the country as they continue to deepen technology in tax collection.

This, according to them, is necessary in view of the government’s drive to unlock revenue generation from tax administration.

According to them, the current six percent of the nation’s tax-to-Gross Domestic Product ratio figure can be increased to 10 per cent if the government is able to deploy technology and collapse duplicated agencies in the country to a single platform that shows live records of buyers, sellers and Federal Inland Revenue Service (FIRS).

Understanding the need for a convenient tax filing and payment system in the country, the Federal Inland Revenue Service (FIRS), in collaboration with Interswitch, one of Africa’s leading integrated payments and digital commerce companies hosted a sensitization programme.

The programme had in attendance stakeholders within the revenue service value chain – private citizens, tax managers, accountants, tax auditors, tax consultants, bankers, and business-owners.

Speaking also at the event, the Group Head, Government, Interswitch, Osasere Atohengbe, noted that the rise of technology-led processes has led to the improvement of service delivery.

“Not only is it important to pay taxes to improve infrastructural development, but the system of tax payment also needs to be addressed to ensure that its collection is sustainable, seamless, transparent and effective.

“To do this, taxpayers need to be in the loop, and we at Interswitch will continue our work with the FIRS to provide the necessary infrastructure that promotes the adoption of digital tax payments among taxpayers, ” Atohengbe added.

Speaking at a conference on the future of tax management in Nigeria with the theme, ‘Sustainable Tax Management: Exploring Digital Remittance’, the Associate Director, PWC, Emeka Chime, noted that the Federal Government should “develop a clear strategy in its drive to boost revenue through technology.”

He however, acknowledged that Nigeria’s current tax-to-GDP at six percent should be increased through innovative solutions. 

In his words: “We have an economy with the highest GDP in Africa, while a country like South Africa is doing above 20 percent tax-to GDP ratio and we are still at six percent.”

Assistant Director, Taxpayer Service Department, FIRS, Manasseh Otega, noted that there was a significant growth in the number of taxpayers as it continues in its awareness drive.

Related Articles