The Group Head of Tax, Nestoil, Stanley Ezekobe, has advised the federal government to prioritise transaction-based taxes such as Value Added Tax (VAT).
Ezekobe, who disclosed this recently at a virtual media roundtable organised by the Nestoil Group said while other forms of tax such as company income tax, are important, transaction-based taxes hold the key to government meeting its revenue target for the 2021 budget of Economic Recovery and Resilience.
Speaking on the topic, ‘Maximising Government Revenue through Effective Taxation’ he said there was need for the tax authorities to seek innovative ways of bringing more people into the tax bracket.
He said the informal sector, where most Nigerians play is either heavily under taxed or not taxed at all.
According to him, “One of the ways to bring the informal sector into the tax bracket is to make the presentation of a tax card a pre-requisite for Nigerians to enjoy specific services from government.
“Government needs to also identify key local figures in their different communities that will greatly assist it in identifying and collecting taxes on its behalf. This community initiative is crucial if the tax net is to be significantly expanded.
“Political leaders must show transparency in how tax revenues are used 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.”