Monday, November 20, 2017
Video - Nigerian government to ramp up on tax collection to fund 2018 budget
Nigeria is hoping that a substantial amount of money it needs to fund its $28 billion budget for next year will come from tax; turning away from depending on oil revenue due to falling prices. With a tax to GDP ratio of just 6%, Nigeria is ranked among the lowest tax- collecting nations in the world. The country is looking to see a 15 percent tax to GDP ratio. The government's efforts to ramp up tax collection face road blocks in the form of tax dodgers. But it's announced a tax amnesty plan for tax dodgers to pay up arrears of unpaid taxes without any penalty. It's also leveraging on technology to drive its tax collection initiative. Nigeria plans to raise around three billion dollars in VAT and Company income tax alone in 2018 while also ramping up earnings from other taxes like PAYE.