The Federal Government should widen its tax net instead of increasing the rate, Tax Justice and Governance Platform (TJ&GP), a Civil Society Organisation has advised.
The Minister of Finance, Zainab Ahmad had announced an increase in the VAT rate at the last Federal Executive Council held on the 11th of September 2019 after several denials of the possibility of an increase in VAT in Nigeria.
She also disclosed that there’ll be a 0.005 percent tax on the profits of companies to be set aside for the Police Trust Fund.
The move, according to Ahmad is expected to generate more revenue for the government.
“We want to state our position for advocacy and campaign which is that Government designs and implements policies and programmes that enhances the welfare of the poor and protects disadvantaged groups that constitute much of the Nigerian population and address issues of inequality. As has been demanded by many Nigerians and groups, we call on the Federal Government pay serious attention to widening the tax net rather than increasing the rate which will only place more burdens on the few that complies already and still exempt the majority that do not pay taxes”.
The CSOs, while urging the Federal Government to consider the burden of tax increment on the lives of average Nigerians, it also challenged that ensuring tax compliance from corporate organisations will help drive the revenue generation.
“We use the forum to call on the Federal Government to again beam its searchlight on illicit financial flows from Nigeria as it represents a source of substantial revenue leakage and loss to government, with a bid to devising practical strategies for preventing the outflows as a way of also capturing revenue due to government and made available to provide services the citizens.”