- In order to to generate more revenues to finance national development, the federal government has introduced the Strategic Revenue Growth Initiative
- The finance minister said the initiative will be implemented in the areas of achieving sustainable revenue generation to optimally collect revenues to maintain fiscal buoyancy and resilience
- Zainab Ahmed also disclosed that there would be a VAT increase during the course of 2019, and that the items affected will be announced later
The federal government on Wednesday, January 23, introduced the Strategic Revenue Growth Initiative to generate more revenues to finance national development.
The minister of finance, Zainab Ahmed, at the official inauguration of the initiative in Abuja said that the aim was to harmonise efforts of all the revenue generating agencies in increasing government’s coffers, NAN reports.
Legit.ng gathers that representatives of the Federal Inland Revenue Service, Nigeria Customs Service, Nigeria National Petroleum Corporation, accountant-general of the federation and Nigeria Sovereign Investment Authority were present at the launch.
Also present, were representatives of the Debt Management Office, Central Bank of Nigeria and the National Insurance Commission.
The major revenue generating agencies made presentations on the initiatives they would introduce in their respective agencies to increase revenue.
Ahmed said: “The initiative will be implemented in the areas of achieving sustainable revenue generation to optimally collect revenues to maintain fiscal buoyancy and resilience.
“We will also be looking at new revenue streams and enhanced enforcement with regards to revenue collection on our existing revenue streams.
“Through the initiative, we hope to achieve cohesion between revenue generating entities and equipping them with cutting-edge tools and expertise needed to support high performance."
Ahmed said that as a way of increasing non-oil revenue, the government was looking at the possibility of increasing Value Added Tax.
“We are studying a possibility of a VAT increase but you also know that the increase of VAT requires an amendment of a law. It is most likely the VAT increase will be selective. It will be on special items so it won’t be across the board.
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"I am sure you are already aware that there are a number of items that are exempted from VAT such as food and drugs.
“There would be a VAT increase during the course of 2019, we will announce later the items and what the rate will be. We will have to take a request to the National Assembly for amendment of the VAT law before it takes effect,’’ she said.
Meanwhile, Legit.ng previously reported that the National Bureau of Statistics (NBS) said the revenue generated from Value Added Tax (VAT) from sectoral distribution from the first to third quarters of 2018 was N808 billion.
VAT is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale.
Sectoral distribution of Value Added Tax for Q2 and Q3, 2018 posted on the bureau’s website, showed an increase in the revenue generated from VAT in during the year under review.
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