FG developing framework to mobilise revenue from non-oil sector – Adeosun

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FEDERAL government yesterday indicated
its resolve to ensure the nation’s tax system
reflects the commercial activity levels in the
country.
In order to achieve this, it stressed its
commitment to the process of mobilising
revenue from the non-oil sector.
In a keynote address at the opening
ceremony of the 18th annual tax conference of
the Chartered Institute of Taxation of Nigeria,
CITN, in Abuja, the Minister of Finance, Mrs.
Kemi Adeosun, who represented President
Muhammadu Buhari, stressed the need for
a robust tax system, which he described
as a pre-requisite for any economy that is
serious in its commitment to growth and
development.
The Minister said, “I carefully read the
communiqué arising from the tax conference
held last year and I acknowledge the
remarkable insight of the diagnosis that
‘Nigeria is experiencing growth without
development.
“I think that the CITN set out clearly the fiscal priorities needed to underpin our
economic agenda in a concise manner. Tax
collection must grow in line with growth in the
economy but this has not been the recent case in
Nigeria and that is our challenge.”
Stressing the resolve of the current
administration to mobilise revenue from
the non-oil sector, Mrs. Adeosun stated the
prevailing tax system must reflect the nature
of the nation’s commercial activity levels. She
noted that oil is just 13 per cent of our GDP
but it represents a disproportionate share of
our tax revenue, promising that Government
will develop a framework that will mobilise
revenue from the non-oil sector.
The Minister explained that the nation’s tax
system must be dynamic in order to respond
to an ever-evolving commercial landscape and
to increasingly technology-driven business
models.
She stated that the Federal Government, as
part of the drive to increase non-oil revenue,
has set an aggressive target for increasing tax
collection. This, according to her, is a reflection
of the fact that the current level of compliance is low and in some cases, the effective
tax rate paid by those that are compliant
is lower than expected. She added that
the commendable administrative efforts
of FIRS would be complemented by an
overhaul of …Read More

Source:: Nigerian Pilot