By Modupe Gbadeyanka

Fiscal authorities in Nigeria have been advised to slow down its aggressive hunger for generating huge revenue from taxes this year.

Nigeria, an oil-dependent nation, has struggled to raise funds for its 2020 budgets as a result of the crash in the prices of the commodity at the global market.

The decline in the price of crude oil was caused by the global health pandemic, Coronavirus disease (COVID-19).

The federal government, in order to increase its revenue, has raised pump price of petrol, increased the Value Added Tax (VAT) from 5 percent to 7.5 percent, while the Central Bank of Nigeria (CBN) has been aggressive with the N50 stamp duty on financial transactions.

Last week, the Federal Inland Revenue Service (FIRS) said residents of the country will start to pay stamp duty on house rent agreement, C of O and others.

But at a press briefing held recently, the International Monetary Fund (IMF) warned the Nigerian government to be careful with the way it goes about its tax drive because it might backfire.

The global lender, which projected a 5.4 percent decline in the country’s economy in 2020, said the COVID-19 crisis has put a deep hole in the pockets of citizens, noting that subjecting them to unnecessary taxes could further compound their woes.

While addressing journalists at the virtual online press conference, the Director of IMF African Department, Mr Abebe Aemro Selassie, stressed that, “This is not the time, of course, to be aggressively introducing new tax measures.”

However, he acknowledged that “there’s the long-standing challenge in Nigeria fiscal side of needing to have sufficient resources generated by the government from non-oil sources to provide investment in health and education and infrastructure.”

He said the local authorities can make this better for the people by coming up with a supportive fiscal policy, especially on the monetary exchange rate front.

The IMF has continually called for a unified foreign exchange rate regime in Nigeria, but the local authorities have been adamant, sticking with its multiple exchange rate system.

But the international financial institution said having a single exchange rate in Nigeria will help in adjusting the economy to external shocks.

“Our projection of 5.4 percent is contingent on a nimble policy response and avoiding some of the challenges that we saw when oil prices declined in 2016, causing GDP to be depressed for an extensive period of time.

“Subject to flexible and nimble policy response, we feel there will be some recovery in Nigeria, but this year will be clearly a difficult one for the country,” Mr Selassie said.

https://businesspost.ng/economy/imf-warns-nigeria-on-aggressive-tax-measures-seeks-supportive-policy/

Thank You for the concern .
Our own leaders them no care about us . Na any wish way them wan make money through us. Them no get any feelings for us at all .

@tosgramm

The most insensitive government on planet earth, other countries are providing palliatives for their citizens but here the want to snuffle the life out their citizens by hitting them back to back to back with different taxes and deduction. They can't even pretend like the care. They are still on their jumbo allowance while the masses suffer..

There was a country?

Nami is an id10t!

He go tax my goat pepper soup if someone doesnt stop his madness. Na who send am to over commit tax revenue goals?

I discussed this with someone at the bank 2days sef..the aggressiveness is too much

This country is just something else

Tell them

The sleepy tyrant is not aware of any aggressive tax policy of his own government!

sympleo, Omenka and others I'm waiting for your justification to defend anti Democratic policies that this govt had long adopted to continue impoverish this country



a govt that promised and vow to lift Nigerians out of abject poverty but imposed taxes on the same poor people he want to lift out of poverty. NEPA fee rise from 10k to 15k, 15k to 28k and I heard vat hike is still suspended despite the increment of NEPA fee


this is not a country our heroes past fought for, this govt has nothing close to humanity even is Social investment had been politicized. Buhari govt happened to be the most anti human govt in the history of Nigeria even Abacha is not close

Imagine outsiders are more compassionate and sensitive than our own very government. Buhari, F9.

Buhari go kill all zombies. The old man was desperate to be President even when he has no clue how to govern.

very useless government, Wish i could leave this damaged country.

Hmmm

Imf is always scared of nigerias progress

lexrichy:
very useless government, Wish i could leave this damaged country.

You can
Just jump into lagoon

Goldencheese:
Imagined outsiders are more compassionate and sensitive than our own very government. Buhari, F9.

Smh
You are so naive
Wake up!!

If Nigeria becomes self sufficient, who loses?? IMF!!!

r

Imagine the constricting tax policies of this govt.They dont just care.This is what when you have a bunch of intellectual and economically daft people leading a nation.