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Nigeria Economic Summit Group’s Fiscal Policy Roundtable (NESG) has launched its Citizen Perception Report, a first of several research pieces to be published in support of its tax reform and advocacy vehicle “Better Tax”.
Better Tax seeks to close knowledge gaps in fiscal policy and create a sustainable framework to actualise the Federal Government’s inclusive economic agenda.
Launched in Lagos Wednesday, the citizens perceptions report, which is the product of a nationwide perception survey cutting across households and small businesses in the tax value chain, tasked government to establish an Office of Tax Simplification (OTS) among other recommendations targeted at demystifying complex provisions in the nation’s tax laws and boosting dwindling revenues from the non-oil sector of the economy.
Sarah Alade, chairman, NESG Fiscal Policy Roundtable, said, “The core concept of the Roundtable was to reflect the needs and objectives that forms the basis of a robust fiscal reform platform focused on mobilising and growing the country’s tax revenue.”
The IMF estimates that revenue collected in 2016 across all tiers of Government was only about 6% of GDP. Historically, more than 70% of those revenues have come from the oil sector while the non-oil sectors, which account for more than 90% of GDP, have historically contributed about 30% to revenues.
“This limits Nigeria’s ability to credibly execute its development plan and fund critical social sector programmes. It also leaves Nigeria very vulnerable to macro-economic shocks from low oil prices. The most recent fall in oil prices threw Nigeria into a fiscal crisis with spillover effects on the economy resulting in a recession in 2016.
“Building a strong revenue base that is balanced between the oil and non-oil sector is therefore critical to sustainably financing Nigeria’s development programme and long-term macro-economic stability.”
According to Alade, data… Read More...