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|Tax Reforms Hold $72b In Extra Revenue For Nigeria, Others by actiondrilling: 6:28am On Mar 26|
Nigeria and other African countries could increase tax revenue by as much as $72 billion or 4.6 per cent of Gross Domestic Product (GDP) yearly if comprehensive tax reforms are carried out, the Economic Commission for Africa (ECA) says.The proposed comprehensive tax reform is one of the recommendations in the 2019 Economic Report on Africa (ERA) recently unveiled.
Despite measures taken in the last two decades to improve tax administration on the continent, with potentials for raising additional tax revenue by closing obvious gaps, glaring inefficiencies still remain.For Nigeria, however, there are concerns among the Organised Private Sector (OPS) over the planned increment in Value Added Tax (VAT), rather than expansion of the tax net, as this could hinder economic growth and increase misery.
The Chairman of Federal Inland Revenue Service (FIRS), Babatunde Fowler, had hinted the hike in VAT when he appeared before the Senate Committee on Finance in Abuja, alongside other top officials in the Federal Ministry of Finance.He said that VAT increase was one of the areas being looked into by his agency to meet its 2019 revenue generation target of N8 trillion, arguing that Nigeria has the lowest VAT rate compared to neighbouring countries.
Reacting to the development, the Manufacturers Association of Nigeria (MAN), through its Director-General, Segun Kadir, stated that the association has always kicked against such moves, noting that while it understands government’s need to raise revenue, other avenues should be explored.
“The country presently has a high poverty rate, high unemployment and income is distributed unequally. An increase in VAT will compound the situation on ground. Our competitiveness may be impacted if we go ahead with the increment. Because it is largely a consumption tax, it will affect overall consumption in the economy”, he added.
The Director-General of the Lagos Chamber of Commerce and Industry (LCCI), Muda Yusuf, noted that times are hard for businesses now, hence, not the best time for such increment.Increasing tax revenue generation in ways that are “equitable and sustainable” will enable African countries to achieve the Sustainable Development Goals and Agenda 2063, according to a report titled: “Fiscal Policy for Financing Sustainable Development in Africa.”
In the segment dealing with tax policy and performance in Africa, it also calls on governments on the continent to address the tax system holistically “to ensure that the tax system is progressive, neutral, fair and efficient, rather than deal with each tax system separately.
”In this way, governments may find additional opportunities for expanding the tax base, create more certainty for tax payers, and contextualise any global standards.”
The report said improvements in tax policy and performance in Africa will depend on more than tax efficiency, but also on the provision of essential public services to reduce inequality and encourage economic growth.To widen the tax base, it suggests African countries need to include more and more diverse payers in the tax net such as rural farmers and workers in the informal sector who have not yet been captured in the tax bracket.
“This should be done without harming the low-income workers,” adding that VAT regulations need to reduce policy gaps such as the excessive use of or reduced rates.It also advocates improving governance in revenue collection by combating corruption and reinforcing accountability to reduce inefficiencies in tax collection.
|Re: Tax Reforms Hold $72b In Extra Revenue For Nigeria, Others by Realdeals(m): 6:48am On Mar 26|
Remarkably, no one is talking about the stamp duty charges on current account transaction. I have never heard the fund from that source accounted for by the Federal government, the fund according to Vanguard is in excess of N20 trillion, yet nobody is talking about it.
SA and the N20trn unremitted stamp duty question
Read more at: https://www.vanguardngr.com/2018/12/tsa-and-the-n20trn-unremitted-stamp-duty-question/
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|Re: Tax Reforms Hold $72b In Extra Revenue For Nigeria, Others by yuanexchanger: 6:55am On Mar 26|
our leaders making plans for the money not yet seen.check ny siggy for your chinese rmb..
|Re: Tax Reforms Hold $72b In Extra Revenue For Nigeria, Others by hisgrace090: 7:03am On Mar 26|
Nigerian govt and careless multiple tax, the problem is that they do nothing with it other than sharing.
Companies are running to other countries due to multiple taxation without amenities and all they do is to instigate more and more tax
|Re: Tax Reforms Hold $72b In Extra Revenue For Nigeria, Others by Esseite: 7:12am On Mar 26|
The country should explore other avenues to generate income, you cant overburden the extremely stretched already at its limit, despite the poor financial indices of the country and its unemployment status.
|Re: Tax Reforms Hold $72b In Extra Revenue For Nigeria, Others by Truefaith: 7:19am On Mar 26|
|Re: Tax Reforms Hold $72b In Extra Revenue For Nigeria, Others by Jossy4luv1(m): 7:19am On Mar 26|
|Re: Tax Reforms Hold $72b In Extra Revenue For Nigeria, Others by StaffofOrayan(m): 7:24am On Mar 26|
I think this clueless govt should allow new startups operate tax free for a certain period to encourage entrepreneurs and budding business people not increasing VAT and trying to milk a sickly Nigeria dry.
|Re: Tax Reforms Hold $72b In Extra Revenue For Nigeria, Others by loretto12: 8:02am On Mar 26|
This our economy ehn!
|Re: Tax Reforms Hold $72b In Extra Revenue For Nigeria, Others by saar1: 8:15am On Mar 26|
HMMMMN all these tax issues
|Re: Tax Reforms Hold $72b In Extra Revenue For Nigeria, Others by fleeter001: 8:21am On Mar 26|
Please PMB and his advisers should re-consider this stance of increasing VAT. I can't see any good coming outta it at this point in space.
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|Re: Tax Reforms Hold $72b In Extra Revenue For Nigeria, Others by kristo123: 8:25am On Mar 26|
Create tax on what... On strained businesses or closed up businesses...
What a clueless government.
|Re: Tax Reforms Hold $72b In Extra Revenue For Nigeria, Others by bigpicture001: 9:25am On Mar 26|
...I created a firm...where my monthly wages pay out is 175k to four workers...
The firm is two and half years old..govt brought me tax last week of 1.5million...and ask dt I meet dem.in court if I refused to pay..i started this firm with savings from work.
Now I don't understand is govt more interested in.money or unemployment. Mind u..3 of my employees are graduates....
Many times as a boss.. I take home like 50k home as my own salary..
My joy is dt am making it work nd hope I will grow to mk my self well paid in d future..
Now..i am thinking of parking shop..sack d workers and relocate to Canada for personal huzles...
Our govt hates start-ups..dey are looking for big white firms to com invest so dey can cut dem dry over tax....
I.may leave in july...
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|Re: Tax Reforms Hold $72b In Extra Revenue For Nigeria, Others by naijainstinct: 11:02am On Mar 26|
bigpicture001:It's quite unfortunate.
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