The federal government, on Thursday, May 12, lamented the nation’s tax to gross domestic product, GDP, ratio, which remains low at seven per cent.
Stating that the situation is indicative of over-reliance on oil, FG noted that most of the tax codes in the country have become outdated, adding that with the objective of the government to drive the economy through revenue from non-oil sources, there is need to carry out a thorough review of the tax codes.
The minister of Finance, Kemi Adeosun, who made this known while speaking during the 18th annual tax conference of the Chartered Institute of Taxation of Nigeria (CITN), said the federal government would work with the National Assembly to expedite action on the review.
She said: “An overhaul of our tax code is long overdue as is the redrafting of our tax laws to reflect current business practices and new trends.
“We must respond to the growing phenomenon of base shifting and other practices that allow companies to evade their fiscal and legal responsibilities.”
“We will critically examine our Gross Domestic Product to align taxes with economic activity in our bid to block all leakages.
“For example, the multi-billion naira losses being identified in our solid minerals sector by illegal and undocumented miners will be addressed with increased formalisation and review of the governing laws.”
She said the government is committed to the continuous improvement of the nation’s tax system, adding that it would use tax administration and technology to widen compliance and encourage more individuals and companies into the tax net.
Adeosun explained that already, the federal government is investing in technology to boost the efficiency of tax collections.
