Skip to main content

RMAFC wants VAT increased to 7.5%

The Chairman, RMAFC, Mr Shettima Gana, said this on Thursday in Kano at a two-day National Revenue Retreat.
Speaking on strategies to expand the revenue base of the government and the new sources for revenue generation, Gana said that Nigeria’s current VAT rate of five per cent was low.
He explained that charge on goods and services charged in Nigeria was one of the lowest in the world.
He said that in South Africa VAT was 14 per cent while in Togo, Senegal, Guinea and Chad, it was 18 per cent, and Niger 19 per cent.
He urged the Federal Government to start the process to increase it to between 7.5 per cent and 10 per cent.
VAT is collected by the Federal Inland Revenue Service and shared to the three tiers of government.
Federal government receives 15 per cent, state governments, 50 per cent and local governments, 35 per cent.
Gana said that VAT was a high tax revenue yielding instrument that could be used to shore-up revenue required for financing the ever-expanding public expenditure and the needs of all the tiers of government.
He said that comprehensive research should be initiated to collect data from the Corporate Affairs Commission, banks, and state ministries of trade and others, to determine and capture all possible VAT targets.
Gana said globally, taxation was seen as the most stable source of government revenue for economic development, yet it was not being properly utilised in Nigeria.
He advised Government to introduce additional taxes, such as toll tax for road, luxury goods tax on mansions, exotic cars, private jets and jewelleries.
He also canvassed for the introduction of inheritance tax which would be paid by a person who inherits money or property from dead relations.
Gana also harped on the importance of developing agriculture, mining and tourism sector, which hold the potential for huge revenue stream for the government.
He urged governments to enhance collection efficiency, block leakages in revenue collection and beef up revenue monitoring and intelligence gathering.
He said that with the introduction of new taxes, more funds would come into government coffers, the economy would be expanded and employment created.
Similarly, the Director, Revenue and Investment, office of the Accountant-General of the Federation, Mr Bakari Wadinga, called for the need to harmonise Personal Income Tax (PIT) collection.
He said that FIRS should be allowed to take over the collection of PIT and it should be modelled after VAT collection.
He said that the present model which allows every state to collect its own PIT was ineffective and allowed huge revenue loss.
“It will be recalled that prior to the introduction of VAT in 1993, it was the sales tax which was being collected by state governments.
“In 1992, the total collection by the entire states of the federation put together, was less than N300 million, but by 1994, when VAT came into effect, the total VAT collections rose to N7 billion.
“By 1995 it rose to N21 billion and 10 years after, VAT rose to N222.6 billion in 2006 and over N700 billion in 2013.
“Thus, greater tax revenue could be raked in if there is collaboration on PIT collection by both states and federal government,” he said.
Wadinga said that if this was adopted, it would result in greater tax revenue generation for sharing.

Popular posts from this blog

Positive Mates Foundation: 2018 Annual Charity day visit to Modupe Cole

Sexual Assault: Catwoman defends herself against Batman

I decided to do this quick recount before it becomes over taking by event…ehm, before I forget to do so. No time to read over for errors. I'm serving it fresh and hot. On this fateful day, I had decided to join the coaster bus ride home, for two reasons, it’s got better seats and arrangement than the popular yellow buses (LT and Paragon), it would also arrive faster at my destination, albeit its more expensive than the yellow buses. I sat down, I can’t say in peace though, you can hardly be on the street of Lagos and expect that tranquility of Beverly Hills, as commuters strolled into the bus indecisively. It took a while before the bus got filled and ready to go. A young lady, had been in the bus for as long as I had been, some few seats behind me, surrounded by male commuters, she was the only female within 3 rows. The journey started slowly, because at this time of the day in Lagos everything goes slowly. The journey started uneventful, besides the occasional ranting of passeng…

Tupac Shakur’s stepfather up for parole after spending 30 years in prison

Mutulu Shakur (born Jeral Wayne Williams, August 8, 1950) is an American black nationalist and acupuncturist. He was a proponent of the Republic of New Afrika and a close friend of Geronimo Pratt.

Shakur is best known for his conviction on racketeering charges following the 1979 prison escape of Joanne Chesimard (Assata Shakur) and the infamous $1.6 million robbery of a Brinks armored truck in New York in which a guard and two police officers were killed. It was later found that an illegal project by the FBI, COINTELPRO, aimed at surveilling, infiltrating, discrediting, and neutralizing what they considered domestic political organizations, like Dr. Martin Luther King Jr., had targeted Mutulu as well as many of his comrades.  Mutulu Shakur is the stepfather of deceased rapper Tupac Shakur. He was captured, convicted and sentenced to 60 years in prison for leading a revolutionary group responsible for a trail of bloodshed, including the slayings of an armed guard and two New York polic…