Civil Society Organizations (CSOs) have proposed increasing the tax rates for the last income bracket (above N50 million) to 26% in other to offset the potential revenue shortfall from this adjustment.
The CSOs said this income group is already taxed at a 7% PIT rate when adjusted for the real value of their earnings.
The CSOs made the recommendation in a communique issued at the just concluded national tax conference, themed: “Economic Stabilization for Equity: Ensuring Fairness in Fiscal Reforms.
The CSOs who are Tax Justice & Governance Platform, State Tax Justice & Governance Platform representatives from Enugu, Ebonyi, Imo,
Anambra, Akwa Ibom, Cross Rivers, Rivers, Bayelsa, Delta, Oyo, Ondo, Ogun, Osun, Lagos, Taraba, Kaduna, Kano, Jigawa and the FCT, Civil Society Legislative Advocacy Centre (CISLAC), Oxfam in Nigeria and others also called on the Presidential Committee to make available to the public, detailed data on the current VAT compliance rate, highlighting challenges leading to underperformance, and
proffering solutions for improvement.
They said the National Assembly to ensure the passage of the sections of the proposed tax bill that aim to harmonise taxes and digitize tax administration.
According to them, “in anticipation of this, we urge the government to expedite the process of developing an effective implementation framework and ensuring its effective use.
“In collaboration with the Federal Inland Revenue Service (FIRS), the Presidential
Committee should release a detailed framework outlining how VAT changes will be enforced, ensuring consistency and transparency across the system.