- The minister of finance, Zainab Ahmed, has disclosed that the federal government plans to introduce new taxes in order to increase revenue
- The minister said the government has devised a new revenue initiative which is divided into three thematic areas
- Ahmed said to achieve this, the govt will be working with the National Assembly to amend some laws and might be using some executive orders
The federal government has concluded plans to introduce new taxes in order to increase revenue.
The development was made public by the minister of finance, Zainab Ahmed, while speaking at the public hearing on the 2019 budget organised by the Senate and House of Representatives committees on appropriation on Wednesday, March 27, Premium Times reports.
Legit.ng gathers that in order to increase revenue to fund the 2019 budget, the federal government has devised a new revenue initiative which is divided into three thematic areas.
Ahmed appealed for support for the initiative from the National Assembly.
She said: “The first area is sustainability in revenue generation. The focus of this is for us to build a sustainable revenue generation ecosystem by ensuring resilience and applying automising revenue streams, applying the right incentives, the right safeguards as well as ensuring accountability and performance management systems.”
On this first area, the minister said it aims to manage performance, deregulate and provide funding for the energy sector by improving collection, shocking loopholes, and collaborating with trading partners.
She continued: “The second thematic area is to identify new and enhance the enforcement of existing revenues streams. We plan to grow revenue by collecting new taxes, modulling the tax base and enabling strategic investment that will spur economic growth.
"In this area, we have identified some new taxes that we’ll be coming to discuss with the National Assembly. We’ve also continuously been working to broaden the tax base to expand and improve the value added tax performance.
“We will be working with the National Assembly to amend some laws and we might be using some executive orders.”
The minister, however, did not disclose details of the new taxes; though different government officials have suggested that taxes be levied on luxury goods like alcoholic beverages. They also suggested an increase in the Value Added Tax (VAT).
Ahmed added that the third thematic area focused on achieving cohesion in the revenue ecosystem.
She said efforts are being made by the federal government to ensure the 2019 budget performs better than that of 2018.
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Meanwhile, Legit.ng previously reported that the Federal Inland Revenue Service (FIRS) on Wednesday, March 20, refuted reports of a planned increment of Value Added Tax by 50 percent to meet up payment of the newly proposed minimum wage.
The head, communication and servicom department, Wahab Gbadamosi, made this known in a statement in Abuja.
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