By Emmanuel Elebeke
The Revenue Mobilization Allocation and Fiscal Commission has backed the new National Tax Policy recently announced by the Federal Government to shore up Nigeria’s dwindling revenue base.
The Acting Chairman of RMAFC, Shettima Umar Abba Gana, made position known while presenting a Paper titled “Expanding Nigeria’s Revenue Base: Strategies and New Sources” at a 2-Day National Revenue Retreat (NRR) organized by the federal Ministry of Finance in Kano.
Gana said the adoption of the new tax regime had become necessary to enable the economy recover from the decline it has suffered as a result of the shortfall in international oil prices and activities of militant and vandals in the Niger Delta.
He observed 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 needs of all tiers of government adding that Nigeria’s current VAT rate of five per cent was one of the lowest in the world.
It would be recalled that Shettima Umar Abba Gana, Acting Chairman of RMAFC had in July 2016, canvassed for the upward review of value added tax from 5 per cent to about 7.5 per cent in order to improve the country’s revenue base.
The Commission reiterated its support for initiatives such as the newly introduced revised tax policy which would go a long way in boosting the nation’s revenue base for sustainable national development.
The Commission further commended the Federal Government’s for what he called bold initiative.
He asserted that taxation was seen globally as the most stable source of government revenue for economic development, adding that the upward review of the existing Value Added Tax (VAT) rate on luxury items, as contained in the New Tax Policy has buttressed its position.
Apart from the upward review of the VAT rate on luxury items, RMAFC also urged the Federal Government to support all monitoring agencies including the RMAFC to enhance collection efficiency, block leakages in revenue collection and strengthen intelligence gathering mechanisms so as to free more funds for governments to expand the economy, ensure rapid economic development and create employment.
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