The Federal Inland Revenue Service (FIRS) and the Economic Community of
West African States (ECOWAS) have initiated a partnership aimed at
improving tax administration as well as addressing a range of investment
policy issues that impinge on the ability of the private sector to
invest efficiently across the region.
The FIRS Executive Chairman, Mr. Tunde
Fowler, who spoke yesterday in Abuja at the first transfer pricing
regional meeting for ECOWAS
member states, said that there was an urgent
need to improve taxation across the West Africa sub-region, even as
funds from taxes are needed to boost its economy.
“We can’t rely on the sale of natural
assets to fund budgets. Every nation has to rely on taxation to fund
projects. It can help many nation. Tax of N5,000 can save the life of a
child. No region can rely entirely on aids. It’s no longer about the
political will. We need improved taxation for survival. Transfer Pricing
might be complex but very important when we get it right,” he said.
Meanwhile, the European Union (EU) has
pledged 7.7 million euros to support the ECOWAS region’s plans to
entrench transfer pricing.
Head of the EU delegation in Nigeria,
Juan Casla, who announced the support, said the forum seeks to address a
range of investment policy issues that constitute barriers for the
private sector to invest efficiency across the region.
He noted that the EU was concerned about
tax efficiency administration in ECOWAs states, urging the region to
enthrone an efficient tax administration.
“An improved tax governance and
transparency are of paramount concern to EU. We signed two conventions
in order to double the support of revenue across the country. That is to
support tax efficiency and avoid illicit financial flow by collecting
more and spend better.
“How do we implement this support? by
leading by example, by implementing the concept at home in EU countries
to combat fraudulent tax; to tackle corporate tax avoidance. We have
been supporting the UN in this area. We are planning to further support
this support to ECOWAS to the tune of 7.7 million euros”, he said.
by Ndubuisi Francis in Abuja
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