Economy Crunch: FG Strikes Out Tax Increase

The federal government has stated that despite the current dwindling oil revenue, there will be no increase in tax revenue.

This was an offshoot of  the meeting of the National Economic Council (NEC) presided over by Vice President Yemi Osinbajo at the Council Chambers of the Aso Rock Presidential Villa in Abuja, on Thursday, January 28.

Briefing State House correspondents later, Budget and National Planning Minister Udoma Udo Udoma emphasized that the government did not intend to increase either the Value Added Tax (VAT) or the Corporate Tax at the moment as it did not want to impose additional burden on Nigerians.

According to the minister, the government only desired an increase in taxes collection rate currently standing at about 20 percent.

He said the executive would collaborate with the National Assembly to explore other innovative financing methods for the 2016 budget especially by considering private sector funding for some capital projects.

Udoma added that the government was also considering tolls collection as an option for road construction projects.