Federal and state governments have been advised to pay more attention to Personal Income Tax (PIT) in order to boost the country’s low non-oil revenue.
A cursory comparative look at the performance of the South African Revenue Authority revealed that PIT accounted for 35 per cent of the total $107 billion (i.e. $37.45 or N15.54 trillion) the country collected last year, whereas, in Nigeria, all the 774 LGs and the 36 States and the FCT put together collected only a paltry sum of N1.23 trillion.
According to analysts, while hitherto it was fashionable to grant tax incentives, now, in a globalised and interwoven market economy, it was no longer attractive to grant tax incentives or waivers.
In 2021, FIRS collection was N6.405 trillion, Customs generated N2.240 trillion; DPR (Royalty) – N1.619 trillion; Joint Tax Board (36 states) – N1. 230 trillion; FCT – N132 billion and tax waivers as per TES – N5.844 trillion, totaling N17.470…
Source: Thisday Newspaper