The minister of finance, budget and national planning, Mrs Zainab Ahmed, has recommended collection of more taxes and effective blockage of revenue leakages as measures to reduce borrowings and high debt burden of the country.
She stated this tuesday in Abuja at a workshop organised by the Economic Community Of West African States (ECOWAS)'s commission on Implementation of the Support Programme for Tax Transition in West Africa (PATF).
The workshop was aimed at examining directives on harmonisation of tax expenditure management practices and the monitoring and evaluation of tax transition in ECOWAS member states.
Represented by the Director, Technical Services in the ministry, Fatima Hayatu, she posited that if the government introduces more taxes or expands the current tax base and block revenue leakages, the country will have more funds to ease the debt burden and reduce borrowings.
She said that the government is looking inward to introduce some taxes to generate more funds to repay the loans from various sources, including China, the World Bank, and the International Monetary Fund.
She said: “If we have more taxes and redirect the taxes to the right fiscal sectors of our economy, we will reduce our debt burden. It is not as if the debt is beyond what the goverment can handle. If you look at the ratio of the debt to the Gross Domestic Product (GDP), I think the goverment is doing well".
She noted that the debt burden is not an issue that cannot be surmounted but "The programme is to block leakages where the taxes are being diverted. So, if we block leakages, and if it is transparent, Nigeria will borrow less and we will have more money to finance other sectors”.
She pointed out that reforms in tax expenditure management were gaining traction in Nigeria and the development has resulted in the continuous development of in-house capabilities and internal restructuring in agencies for greater efficiency.
She also said that the government will embark on the rationalisation of tax exemptions by phasing out antiquated pioneers and other tax incentives for matured industries.
The minister noted that contrary to what was obtained in the past, the country is reaping the benefits of tax exemptions and concessions given to small businesses.
“A lot has changed, the system is more transparent and tax expenditure that government has given which is tax for bond is to encourage ailing and infant industries to do more and employ more youths.’’ she said.
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