The Minister of Finance, Wale Edun, has debunked rumors of the government seeking to increase tax rates, instead emphasizing a focus on revenue growth and effective tax collection. Speaking before the House of Representatives Committee on Appropriations, Edun addressed concerns raised by lawmaker Iduma Igariwey and assured both the lawmakers and the Nigerian populace that the government’s priority is to broaden the tax base, not to raise tax rates.
In response to the apprehension about the government’s purported plan to elevate tax revenue to GDP, the minister clarified, “There is no plan for an increase in tax rate as such. The plan is to increase the revenue from taxation.” He further expounded that the government aims to bolster tax compliance and minimize tax leakages by doubling the taxation returns as a percentage of the GDP from the current 9% to 18% within a three-year span. The minister underscored that this endeavor aligns closely with the African average and is geared towards promoting investment, both domestic and foreign, through prospective tax reductions in the future.
Notably, the current administration has set its sight on achieving an 18% Tax-Revenue-GDP ratio. Edun reiterated the government’s commitment to fortify tax collection mechanisms while staunchly opposing any notions of tax rate escalation. “The emphasis is on raising revenue,” he affirmed, elucidating the government’s unequivocal dedication to fortify revenue generation without burdening taxpayers with escalated tax rates.
Moreover, the Finance Minister illuminated the government’s strategic approach, elucidating its fervent resolve to ensure the efficacious collection of taxes and staunch expulsion of revenue leakages. “The government’s focus is on widening the tax net and ensuring the efficient gathering of taxes while plugging fiscal loopholes,” he added, emphasizing the government’s unwavering commitment to fortify the nation’s fiscal position through prudent revenue management.
Edun’s appearance before the Committee served as an avenue to explicate and defend the N27.5 trillion budget before the National Assembly, marking a pivotal juncture in the government’s engagement with the legislative arm to secure the necessary approvals for the proposed budget.
In conclusion, the Finance Minister’s reassurance dispels any apprehensions of impending tax hikes, epitomizing the government’s resolute pursuit of sustainable revenue growth and fiscal prudence. With an unwavering commitment to bolster tax collection and broaden the tax base, the government charts a course towards fostering a robust and investment-friendly fiscal landscape, emblematic of its dedication to uplifting the nation’s economic trajectory.
