The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has said that approximately 90% of the tax revenue going into the government treasury originates from just nine tax heads.
Edun stated this during a briefing at the ongoing Spring Meetings of the International Monetary Fund (IMF) and World Bank in Washington DC on Friday.
The Minister noted that although there are around 80 different taxes and levies across Nigeria, only nine of them generate the current 90% of revenue that significantly contributes to the Gross Domestic Product (GDP).
Edun explained that the government’s objective is to reduce the multitude of taxes and properly bill individuals, which will enhance people’s willingness to pay and ultimately increase revenue collection.
Speaking further, the Minister said that the Federal Government is committed to tackling the issues of excess liquidity by temporarily suspending the use of ways and means from the Central Bank of Nigeria (CBN).
He explained that this action is designed to promote a collaborative synergy between fiscal and monetary authorities to alleviate inflationary pressures and stabilize the currency exchange rate.
