Some financial experts on Wednesday urged the federal government to strengthen taxes and levies collections to sustain the increase in the nation’s non-oil revenue generation.
They told the News Agency of Nigeria (NAN) in Lagos that government should tighten the existing loopholes in that sector to bridge the dwindling revenue from oil.
The experts were reacting to the increase in non-oil revenue from N165 billion to N301.32 billion announced by the Federal Government in June, the highest in almost two years.
The Minister of Finance, Mrs. Kemi Adeosun attributed it to the efficiency in collection by the revenue generating agencies, especially the Federal Revenue Inland Service.
The Managing Director, H J Trust & Investment Ltd., Lagos, Mr. Harrison Owoh, commended the government for the achievement, adding that more would be achieved if the loopholes were blocked.
Owoh said that government should use consultants in tax and levies collection for companies and individuals to increase the revenue generation.
He also called for proper monitoring of government revenue generating agencies for full remittance to avoid diversion of revenues into personal pockets.
Owoh said that implementation of Treasury Single Account (TSA) in government agencies and cancellation of import waiver granted to selected individuals contributed to the growth.
“TSA implementation contributed to the increase and should be sustained because it is the government agencies that spend the excesses,” he added.
The Managing Director, APT Securities and Funds Ltd., Lagos, Mallam Garba Kurfi, attributed the growth to increase in taxes paid by corporate companies.
Kurfi stated that government should pursue positive economic policies that would promote growth and development of the real sector to sustain growth in revenue generation.
He said that the trend would not be sustained with the current economic policies, adding that foreign exchange challenges had affected manufacturing companies.
“Most companies are performing below capacities and if the trend continues they will find it difficult to declare profit, which will affect payment of tax,” Kurfi said.
He called on the government to widen its tax collection margin to ensure that all companies were captured in the revenue drive.