Fowler and task of repositioning the Tax systems

As the new boss of the federal inland revenue ( FIRS) assumes his place, it is
obvious that the dwindling fortunes of crude oil in the country have now opened the eyes of many on the relevance of tax as a veritable source of revenue to the government.
Mr. Fowler, who no doubt earned his call to this very demanding position.
Based on the reputation he acclaimed while he served as the boss of the Lagos state Board of Internal Revenue. He is of course not new new to the system and is expected to deliver on this mandate.
Nigerias tax revenue to GDP have continued to remain at a staggering low.
Studies revealed by indexmundi an online site revealed that tax as a %
percentage to GDP in Nigeria was at 1.56% as of 2012. It went further to state
that its highest value over the past years was 5.46% in 2008 while its lowest
value was 0.91 in 2004.
Similarly, last year Dr.(Mrs) Ngozi Okonjo-iweala whilst speaking at the
inauguration of FIRS Multi purpose training school in Abuja said that the
countries revenue rate had reduced from 20% of the proceeding year to 12%.
She equally noted that out of the 12% only 4% was derived from the non oil
sector.
The new FIRS boss has a lot to do in strengthening tax systems and making
it as viable as it ought to be. Away from the lingering problem of tax
administration there is the need to shift focus from the Petroleum Profit Tax
(PPT) and pay more attention to the non oil sectors like the Corporate tax and capital gains tax as well as Property taxes . There is need for proper tax
education particularly at the grassroots. Tax authorities should ensure strict
adherence to tax regulations whilst also ensuring violators of such laws be
brought to book.
There is also the need for the review of tax polices and practises in view of
the current economic realities. Currently our Value Added Tax rate is one of the lowest in the world if not the lowest at 5% it is nowhere compared to that of fellow African states like South Africa (14%) Kenya (16%) and Ghana (17.5%).
Furthermore, there should be a very robust and healthy relationship between
tax authorities, customs and immigration officials. So as to ensure that
consistent and efficient revenue from custom duties.
Lastly, the recent report by the Action Aid and Tax Justice Network Africa in
which they stated that we spend about 2.9 billion dollars on tax waivers more than our annual budget allocation to the education sector, cannot have come at a better time. It goes along way in telling us that a lot needs to be done on the task of repositioning our tax systems towards economic growth and prosperity.