NAN-H-31
Tax
Lagos, Jan. 21, 2017 (NAN) The Muslim Congress (TMC), a faith-based organisation, has advised the Federal Government to expand the tax net by bringing more people into the net as tax payers.
The chairman of the organisation’s Committee on Social Mobilisation, the Economy and Politics, Dr Luqman AbdurRaheem, gave the advice during the “5th State of the Nation Quarterly Address’’ of the organisation, presented on Saturday in Lagos.
AbdurRaheem said that more revenue would come in through this method, rather than increasing the tax payable by already-impoverished Nigerian workers.
He said the percentage contribution of tax to Nigeria’s GDP was very low and, therefore, should be addressed.
“The issue of taxation will have to be addressed critically because the percentage contribution of tax to GDP in Nigeria is very small.
“One of the problems is that of collusion of tax officials with tax payers, leading to lower generation.
“The second problem is that too many citizens are out of tax net; they need to be encouraged and brought into the tax net rather than increasing tax rates.
“If you bring more people into the tax net, you are going to collect more revenue,’’ he said.
AbdurRaheem also observed that there were defects in budgeting in Nigeria, which he said, had remained unsolved till date.
“The defect has to do with allocation of salaries and allowances, which are lopsided in favour of politicians and top-flight civil servants at the expense of the masses, who are told to survive on a minimum wage of N18,000 per month.
“This is one of the structural defects of our budget which need to be corrected.
“We, therefore, want to urge the Revenue Mobilisation Allocation and Fiscal Commission to look into the salary of public servants and political office holders,’’ he said. (NAN)
AIB/AJA
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(Edited by Adeleye Ajayi)