The Chairman of the Presidential Tax and Fiscal Policy Reforms Committee, Taiwo Oyedele, has said the proposed plan to increase the Value Added tax rate from 7.5 per cent to 10 per cent will be implemented in phases.
This was as he revealed that empirical data had confirmed that less than 10 per cent of affluent Nigerians fulfill their obligation to file and pay the correct amount of taxes to the government.
Speaking at a public consultation workshop for journalists and public analysts held in Abuja with the theme, ‘Proposed changes to the national tax policy, tax laws and administration,’ on Monday, Oyedele stated that the VAT revenue-sharing formula had also been reviewed to increase state collection rate from 50 to 55 per cent, local government area to 35 per cent and reduce FG rate to 10 per cent. He asserted that implementing this measure would not only enable the government to sidestep a notable decline in revenue but also mitigate the sudden surge in prices of goods and services overnight.
