Additional Tax will weaken businesses more-NECA

The former deputy governor of the Central Bank of Nigeria Professor Kingsley Moghalu has expressed his satisfaction on the call by the international monetary fund for Nigeria to raise taxes.

Mr Moghalu in his tweet on Monday said the recommendation by IMF would not solve Nigeria’s economic crisis.

According to him, the country needs more efficient and widespread tax collection.

The International Monetary Fund (IMF) had called on the Federal Government to increase its domestic revenue through tax to meet its budgetary deficit obligations.

The IMF made the call in its briefings at the launch of the Global Financial stability Report with the theme ‘Navigating the High-Inflation Environment.’

The Global Financial Stability Report (GFSR) assesses key vulnerabilities the global financial system is exposed to.

Speaking on this issue, fiscal policy partner and Africa Tax Leader, PwC, Taiwo Oyedele said money flows in the direction where it is needed.

He noted that a lot of companies are currently defaulting in the payment of their tax which is not healthy for the econmy as these monies are being out into developing the economy.

Speaking on the removal of fuel subsidies, Mr Oyedele said the reality of the amount Nigeria is spending on fuel subsidy is significantly inflated.

According to him, this could be as a result of fictitious consumption, manipulation of the system and so on.

Mr Oyedele advised that removal of subsidy should be done in a very meticulous manner but urgently.

He added that devaluing the Nigerian currency is not the way to go rather we should first and foremost drive efficiency and transparency in the management of Forex.