Wednesday, February 14, 2018 /08:57
AM / FBNQuest Research
the data on gross non-oil revenue collection for Q4 2017 show some positive
momentum on a y/y basis (Good
Morning Nigeria, 12 February 2018),
the authorities have far to go. They will again be looking to oil taxes to
cover a shortfall from the rest of the economy.
now, official figures indicate that just 214 people pay personal income tax
above N20m annually. From a casual look at company financials and without
making assumptions for what is due from the informal/unbanked economy, the
local media has estimated that the figure should be several thousand.
A leading accountancy firm in Lagos has
said that VAT at the current 5% standard rate should be yielding N2.5trn per
year rather than the N970bn collected (gross) last year. Its figure assumes
that consumption accounts for 80% of GDP and that 50% of consumption is subject
The FGN is considering several initiatives
to boost its take. These include making the sale of lottery tickets subject to
VAT and capping the cash reimbursement of expenses at N50,000 per transaction.
The category for others covers the FGN’s
independent revenue, the education tax, and customs levies at the port and on
goods such as sugar and cement.