Nigeria has generated about 797.51 billion naira revenue through the Value Added Tax (VAT) in the first 10 month of the year, its minister of finance Kemi Adeosun has reveled.
The West African country has projected to generate a total of 1.73 trillion naira from VAT for the 2017 fiscal year. The amount generated so far represented 46.15 percent of the expected revenue from the source.
Adeosun said the nation achieved its highest VAT collection of 86.71 billion in September, while in May a total of 84.67 billion naira was earned and in October, the country earned 83.315 billion.
A total of 69.20 billion naira was generated in March,representing the lowest VAT earning this year, the minister said.
Africa's biggest economy share revenue pool from crude oil and non-oil sources among its three tiers of government -local, state and federal. The federal government gets 15 per cent of VAT revenue, while the states and local governments receive 50 per cent and 35 per cent, respectively.
Nigeria has reiterated its commitment to aggressively growing the tax revenue base in order to drive economic growth.
“Revenue mobilisation is key to national growth and critical to the success of Nigeria’s economic reform agenda. We have an unacceptably low level of non-oil revenue and much of that is driven by a failure to collect tax revenues.
“With a tax to Gross Domestic Product ratio of only six per cent, which is one of the lowest levels in the world, we have a lot of work to do if we are going to build a sustainable revenue base that will deliver inclusive growth. Improving VAT and other tax collections is key to Nigeria’s revenue strategy,” the minister said.
She stressed that the country’s revenue strategy to improve tax through the Voluntary Assets and Income Declaration Scheme (VAIDS), would lead to a broader tax base and more sustainable revenue for all tiers of government.
“Revenue mobilisation is key to national growth and critical to the success of Nigeria’s economic reform agenda. We have an unacceptably low level of non-oil revenue and much of that is driven by a failure to collect tax revenues.
“With a tax to Gross Domestic Product ratio of only six per cent, which is one of the lowest levels in the world, we have a lot of work to do if we are going to build a sustainable revenue base that will deliver inclusive growth. Improving VAT and other tax collections is key to Nigeria’s revenue strategy,” the minister said.
She stressed that the country’s revenue strategy to improve tax through the Voluntary Assets and Income Declaration Scheme (VAIDS), would lead to a broader tax base and more sustainable revenue for all tiers of government.
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