Nigeria rules out tax increase this year
Reeling from external trade shocks, resulting in search for alternative source of funds for financing public expenditures, experts have advised African countries to exercise restraint in sourcing for foreign loans.
Reeling from external trade shocks, resulting in search for alternative source of funds for financing public expenditures, experts have advised African countries to exercise restraint in sourcing for foreign loans.
This is even as the government of Nigeria may have shelved any plan to increase taxes, especially the Value Added Tax (VAT), at least this year.
Speaking to The Guardian shortly after yesterday’s opening ceremonies of the High Level Ministerial Segment of the Conference of Ministers – Africa Development Week – holding in Addis Ababa, the Minister of State for Budget and National Planning, Mrs. Zainab Ahmed, said while government may have shelved plans at increasing VAT from its present five percent, in favour of widening the revenue base to capture areas where taxes are not being paid, it may, however, have to revisit the possibility of increasing the amount of VAT next year.
“This is, however, a decision that would be discussed and achieved at the Federal Executive Council,” she stressed.
“This is, however, a decision that would be discussed and achieved at the Federal Executive Council,” she stressed.
The event attracted a number of dignitaries, including the Prime Minister of Ethiopia, Hailemariam Desalgen, Prime Minister of Democratic Republic of Congo, Augustin Matata Ponyo Mapon, Vice President of Namibia, Nickey Iyambo, Chairperson of African Union Commission, Dr. Nkosazana Dlamini Zuma, UN Under-Secretary-General and Executive Secretary of the Economic Commission for Africa (ECA), Dr. Carlos Lopes, African ministers of finance, economic planning, budgeting, development and health, including Mrs. Ahmad.
The minister stressed that government’s immediate priority was to identify and register tax defaulters.
Others at the event were at least 10 former African Heads of Government, led by erstwhile Mozambique President, Joaquim Alberto Chissano, former Head of State, General Yakubu Gowon, and former South Africa President, Mr. Thabo Mbeki.
Nigeria’s former minister of finance, Mrs. Ngozi Okonjo-Iweala, was among the dignitaries.
In his speech, the Ethiopian premier stressed that the theme of the conference, ‘Towards an Integrated and Coherent Approach to Implementation, Monitoring and Evaluation of Agenda 2063 and the SDGs,’ was auspicious.
“It focuses on the operationalisation of the global and regional development frameworks within the context of national planning,” he said.
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