Expert advises FG to grow tax revenue

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Stanley Ezekobe, a tax expert and the group head of tax, Nestoil has asked the Federal Government to make growing its tax revenue a major priority.

Ezekobe who was speaking at a virtual media roundtable organised by the Nestoil Group recently said if the government must significantly shore up its tax revenue, it needed to prioritise transaction-based taxes such as the Value Added Tax ( VAT).

He stated that while other tax verticals like company income tax were important, transaction-based taxes hold the key to the government meeting its revenue target for the 2021 budget of economic recovery and resilience.

Speaking on the topic, ‘ maximising government revenue through effective taxation’ Ezekobe stressed the need for tax authorities to seek innovative ways of bringing more people into the tax bracket.

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He said the informal sector, where most Nigerians play is either heavily under-taxed or not taxed at all.

According to Ezekobe, one of the ways to bring the informal sector into the tax bracket was to make the presentation of a tax card a prerequisite for Nigerians to enjoy specific services from the government.

He enjoined the government to also identify key local figures in their different communities that can assist in identifying and collecting taxes on its behalf.

He, however, argued that political leaders must show transparency in how tax revenues were deployed to meet the needs of the people.

“For tax revenue to grow, the government must maximise tax collection, maximise the use of what has been collected and in order to be fully effective, they need to be accountable to those whom they have collected the revenue from in the first place,’’ said Ezekobe.