The Citizens Awareness Against Corruption and Social Vices Initiative (CAACASVI) has decries the low tax collection by the nation’s revenue generating agencies in the country.
CAASASVI Executive Director, Mr. Olumuyiwa Onilede, made the call on Wednesday in Abuja, at a news conference.
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According to him, the leadership of revenue generating agencies across the MDAs, seems to lack the competence to make Nigeria realize the country’s tax drive excellence.
“A typical developing economy collects just 15 percent of GDP in taxes, compared with the 40 percent collected by a typical advanced economy. The ability to collect taxes is central to a country’s capacity to finance social services such as health and education, critical infrastructure, such as electricity, roads and other public amenities.
“Considering the vast needs of populous and developing countries like Nigeria, this low level of tax collection is putting economic development at risk,” Onilede said.
He said that CAASASVI’s position is not different from President Muhammadu Buhari’s statement during budget presentation that the problem with Nigeria’s economy is not because of the country’ debt profile, but it is due to low revenue generation.
He said that this was also corroborated by the Minister of Finance, Mrs Zainab Ahmed, during her press briefing on the 2022 budget.
He said, “If the President and the Minister has confirmed that the country has problem with revenue generation, then it is pertinent to beam the searchlight on activities of our revenue generating agencies.
“If the President must achieve his aim of leaving a legacy in the area of infrastructure development, then he must prioritise tax as a major source of economic drive.”