WorldStage Newsonline-- Nigeria has been ranked 170th position among 189 countries examined for their overall tax processes assessment coducted by the World Bank and PriceWaterhouseCoopers (PwC).
With the latest report, Nigeria has sunk further in the ranking scale from the 155th position it attained the previous year out of the 185 countries assessed.
Presenting the report on ease of paying taxes in the 189 countries covered Tuesday in Abuja, Mr Taiwo Oyedele, Head, Tax and Corporate Advisory Service of PriceWaterhouseCoopers, pointed out that the country was not doing well in terms of ease of tax payment and that that was clearly not where the country should be if it aims to become one of the top 20 countries globally by the year 2020.
He attributed Nigeria’s latest poor ranking to the fact that "the time it takes small companies to comply to pay tax is difficult in Nigeria. It takes a small company 956 hours a year to comply with tax payment procedures the average worldwide is 268 hours and the average for Africa is 230 hours Nigeria is more than four times the average for Africa for the time it takes to comply."
He further said it was cumbersome and took a lot of time to get a tax payer to prepare tax returns with the information needed, fill out tax return forms, and then submit to tax authorities for verification and payment to the FIRS and collection of tax certificate.
Oyedele, who noted that most Nigerians knew it was not easy to get tax certificate in the country, said the report indicated a correlation between a good tax system compliance rate and growth in GDP, pointing out that "if you make it easier for people to make tax payments, it will boost economic growth."
According to him, Nigeria had been going down the ranking in the last few years and attributed the latest reason why the country lost some position in the current ranking to the imposition of the employee compensation contribution by the National Assembly.
He explained: “A few years ago it used to be that the private sector and the insurance company will agree to buy out an insurance premium, in the event something happens to the staff while they are doing their work and you compensate them.