Leading professional services firm, PricewaterhouseCoopers (PwC) Nigeria, has called on the Nigerian government to overhaul the country’s tax system to ensure that taxes are used to bring about sustainable economic growth.

Ken Igbokwe, the Country Leader for PwC Nigeria and Regional Senior Partner, West Africa, made this call in his paper, ‘Hallmarks of a good tax system’ presented at the launch of the Nigeria Leadership Initiative (NLI)’s White Papers Volume 2, on September 17, 2013. He observed that taxes should be raised to meet social needs, develop infrastructure and influence economic decisions without discouraging investments or stifling growth. He said that sensible tax reforms will pave the road to a sustainable economic growth in the country.

According to Taiwo Oyedele, Partner and Head of Tax at PwC, “The task of governments in meeting these requirements is not an easy one, particularly in the current economic circumstances, but what is important is ensuring that the tax system encourages, and not discourages, business growth.”

He opined that the most important aspect of achieving a good tax system is having the right legal framework in place and called on the legislative arms of government to consciously make laws that are clear and easy to understand. He further advocated for the setting up of a specific committee of the National and State Assemblies on Tax Matters; and empowering the Joint Tax Board to enforce compliance with tax laws rather than merely acting in an advisory capacity.

Oyedele defined a good tax system as one that has a clear purpose – strategic, coherent, efficient, fair and transparent – and urged the three arms of government to carry out their respective roles in building a good tax system.