How Federal Government can increase revenue without Stamp Duty
View pictures in App save up to 80% data. What the FEDERAL GOVERNMENT should do
Recently, I read from one of the national dailies where the NCDC Boss said that Nigeria won't return to normalcy until 2021. I read that caption for like ten times with many thoughts in my mind. I felt a lot of concerns for Nigeria my country and Nigerians, especially the poor masses.
Nigeria as a nation depends on oil to generate at least 90% of it revenue (I stand to be corrected on this). With the outbreak of Covid 19, this major source of income for the country has been adversely affected. That means we must source for other sources of income as a nation to survive or the unthinkable happens.
In a bid to do this, it is my understanding that the only hope now is through taxation. In other words, tax remains the only hope for the government to generate revenue, especially from the corporate organizations.
For most organizations their annual tax return is a far cry compared to their annual overhead cost. How're these organizations going to maintain it's workforce in this crisis - pay salaries and do other things too? Friends, believe it or not, layoff is inevitable if something is not seriously done. And asking the government to slash or cancel tax remittance will not work at this time. Unless you want the government to shut down. What a dilemma!
If that is the case, how do the Federal Government assist those organizations whose finances have been affected badly by the pandemic?
It's on record that many companies have closed down and some are laying off their staff to meet up with current challenges. Others have slashed their workers' salaries too. If some of these organizations are not getting enough to pay salaries talk more of paying their taxes to the government, who then bears the brunt most? Your answer is as good as mine.
Last month or thereabout, many corporate organizations donated billions to the Federal Government in support of the fight against Covid 19. This donations created an impression that all is well until recently I read in the media that Access Bank, one of the organizations that joined in this jamboree, is doing away with over 600 staff and many others copying same.
In the midst of all these, I suggest the following.
1. That government should suspend the 7.5% VAT and revert back to 5% VAT until the economy stabilizes. Anything short than this will bring untold hardship to the citizens. It must be a win win situation.
2. Government should encourage prudency and accountability in their dealings.
3. Utilized the revenue coming from the Power Sector and Oil
4. Cut down Government officials allowance and salaries
5. Efficient use of indirect taxes