Dr Samuel Nzekwe, former President, Association of National Accountants of Nigeria (ANAN), has advised the Federal Government to intensify efforts in getting more people to pay Value Added Taxes(VAT) .
Nzekwe, who gave the advice in an interview with journalists in Ota, Ogun, on Wednesday, said such decision would boost the nation’s revenue profile.
The Minister of Budget and Planning, Mr Udo Udoma, had on Tuesday in Abuja, said the Federal Government was planning to increase the nation’s VAT by 50 per cent.
He said the effort was to meet the demand of the new minimum wage.
The former ANAN president spoke against the backdrop of the Federal Government’s move to increase the VAT to meet payment of the new N30, 000 minimum wage in the country.
He said that increasing the nation’s VAT would not solve revenue challenge, but rather contribute to increase in inflation in the country.
‘‘The Federal Inland Revenue Service (FIRS) has not been able to capture all people into the VAT net.”
‘‘A lot of people in the country are not paying VAT.
‘‘More people are paying taxes without VAT due to poor compliance to the FIRS officials.
‘‘What they should have done is to get more people to pay VAT,’’ he said.
Nzekwe noted that compliance was the major problem with the provisions of VAT because, it was poorly managed.
The former ANAN president suggested that the FIRS should redouble its efforts to ensure that more enable people are captured into the VAT net in order to boost the nation’s revenues.