Following the over 50 per
cent revenue loss by Nigeria due to the falling oil prices, the coordinating minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, has spoken on the need for the harmonisation of taxes in the country through the focus on Value Added Tax (VAT).
The minister, who stated this while briefing journalists at the end of the just-concluded International Monetary Fund/World Bank 2015 spring meeting in Washington also called for the speedy passage of the 2015 budget.
According to her, there was need to harmonise and streamline and do away with many of the existing fees and charges and focus on the main important taxes which would generate revenue that was needed “and that is the VAT”.
She said if that was doubled, it would bring a lot of money for the states.
Further, she said at the last meeting of the National Economic Council the state governors said this was what they recommended.
She said it was not even an issue of the federal government because the state governments want it as they know they would get up to 86 per cent of the fund.
While summerising, Okonjo-Iweala stated that the spring meetings focused on two sets of critical issues including the weak recovery in the global economy and the issue of falling commodity prices and the implications for the emerging markets and low income countries which are dependent on such items for revenue.
“The conclusion is that generally falling commodity prices like falling oil prices can become beneficial to global growth and actually the World Bank is estimating I per cent growth in Gross Domestic Product (GDP) for the world based on this because consumers and businesses benefit.
“But for the countries that export these commodities of course, it is a challenge,” she said.
She added that a lot of time was spent trying to discuss what sort of policies these countries should take in order to be able to manage the situation even as she said Nigeria was affected because its main commodity has fallen more than 50 percent.