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LequteMan
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Nigeria - The Minister of Finance and Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, has warned FG against the practice of multiple taxation, saying it will be injurious to businesses and would, ultimately, hamper increased revenue to the government, The Nation reports.
According to her increased taxes, especially the Value Added Tax (VAT), was required to boost government’s revenue, but things must be handled with caution.
“In our economy, there are entities charging all manner of fees, from the Federal Government, ministries , agencies, to the states and local governments. They are too many and sometimes they don’t raise the kind of revenue that is needed,” she said, adding that there is ongoing process to harmonise these multiplicity of taxes, as well as rationalise them so that businesses and individuals do not feel that they are being constantly taxed.
“The key thing is that the taxes that raise revenue for the economy (the VAT for an example) has not been used as a policy. We’ll probably raise far more revenue than all these small taxes that are being raised.” She stressed the need to harmonise, streamline and do away with most of the existing fees and charges.
“We need to focus on the main taxes that will really generate the kind of revenue necessary, and that is the VAT,” she stated.
She said her position on the review and overhaul of the nation’s tax system is supported by the governors, who in their last National Economic Council (NEC) meeting, recommended the option.
#Nigeria #Okonjo-Iweala #VAT
According to her increased taxes, especially the Value Added Tax (VAT), was required to boost government’s revenue, but things must be handled with caution.
“In our economy, there are entities charging all manner of fees, from the Federal Government, ministries , agencies, to the states and local governments. They are too many and sometimes they don’t raise the kind of revenue that is needed,” she said, adding that there is ongoing process to harmonise these multiplicity of taxes, as well as rationalise them so that businesses and individuals do not feel that they are being constantly taxed.
“The key thing is that the taxes that raise revenue for the economy (the VAT for an example) has not been used as a policy. We’ll probably raise far more revenue than all these small taxes that are being raised.” She stressed the need to harmonise, streamline and do away with most of the existing fees and charges.
“We need to focus on the main taxes that will really generate the kind of revenue necessary, and that is the VAT,” she stated.
She said her position on the review and overhaul of the nation’s tax system is supported by the governors, who in their last National Economic Council (NEC) meeting, recommended the option.
#Nigeria #Okonjo-Iweala #VAT
