Minister of Finance and Coordinating Minister of the Economy, Wale Edun, yesterday, ruled out an increment in taxes. At an interactive session with the Abubakar Kabir Bichi-led House of Representatives Committee on Finance in Abuja, he said rather than increase taxes, his ministry would place emphasis on revenue generation in the 2024 financial year.

The parley, involving the panel, minister and government-owned enterprises (GOEs), was to shore up revenue beyond the N27.5 trillion captured in next year’s budget.

Edun said it would be counter-productive to increase taxes amid commitment to attract local and foreign investors. His words: “You did say that there is a plan for taxation increase. I would say there is no plan for increase in tax rates as such. There is a plan for increasing the revenue from taxation. It is to increase tax returns, tax revenue as a percentage of GDP from around nine per cent within three years to 18 per cent, which is closer to the African average.

“So the emphasis is on collection, not on increasing the tax rates. It is increasing the efficiency of tax administration, particularly collection.”
The minister, who acknowledged the need to spend more on infrastructure and social services like education and health, canvassed plugging of leakages and reduced government expenditure. While encouraging accountability in oil receipts, Edun insisted that the 2024 budget estimates were reasonable.

Meanwhile, the panel has pleaded with the Nigeria Customs Service (NCS) to increase its 2024 revenue target to N6 trillion. The chairman, Bichi, implored the Comptroller General (CG), Adewale Adeniyi, to think of increasing the targeted N5 trillion when he appeared before the lawmakers in Abuja.

His words: “Is there a possibility to increase your revenue? We will be glad if you can make N6 trillion for the 2024 revenue.” Bichi noted that the Renewed Hope Agenda of President Bola Tinubu would not be achieved unless revenue-generating agencies increased their targeted revenues.

He said the 2024 appropriation bill presented by the President was laudable, adding that it would only materialise if there were enough money to execute it.

Responding, Adeniyi submitted: “I share the optimism of increasing the revenue to N6 trillion in 2024. So, N6 trillion in revenue in 2024 is possible.”
He, however, said if the Federal Government was able to review the issue around concession grants next year, his agency might realise the N6 trillion proposal.

The CG added that the new law “will also help us to facilitate a number of issues that will make revenue generation possible.”Adeniyi regretted the issue around waivers, noting: “It is one of those areas where this kind of revenue for 2024 is achievable.

“If we can get N1.8 trillion in one year, that shows the N6 trillion revenue for 2024 is achievable.” He said many of the goods at the ports were yet to be cleared, adding that when the service assessed its system, it discovered that a number of bills were not opened.

The CG revealed that over N11 billion was realised from an internal audit undertaken by the organisation, admitting that a lot of goods were still to be cleared.

Adeniyi said this year, NCS lost N1.8 trillion to Import Duty Exemption Certificate (IDEC), stating that excise accounted for 18 per cent of total revenue.