Economy

FG should reduce tax of small investors, low income earners to grow economy, says ex-CIBN President

Mr Okechukwu Unegbu, a financial expert says the Federal Government needs to reduce tax of low income earners and small investors.

According to him, this will encourage investments, boost job creation and grow the nation’s economy.

Unegbu, who is a former President of the Chattered Institute of Bankers of Nigeria (CIBN), gave the advice in an interview with News Agency of Nigeria on Tuesday in Abuja.

According to him, reducing tax of low income earners and small investors will encourage more investments, boost job creation and grow the national economy.

He, however, suggested that wealthy Nigerians should be made to pay more tax.

“The immediate step to take for government to grow the economy is to reduce tax at the lower level, while high income earners and big investors should be made to pay more tax.

“This will help businesses grow, and make more money available for investment,’’ Unegbu said.

Unegbu also urged the Federal Government to improve on its fight against corruption to attract more investments into the economy.

He said that direct job creation was another sure way for government to fast track economic growth in the country.

“Official corruption poses a disincentive to investment and economic growth. It should be tackled with renewed vigour.

“Government should also take immediate steps to create jobs and reduce unemployment in the country.

“The plan by the Federal Government to create 774 thousand jobs across all Local Government Areas in Nigeria is laudable; it will expand the tax net thereby improving government revenue,’’ he said.

He urged government to fast track the initiative and address controversies that have bedeviled the job creation initiative.

Unegbu called on the Federal Government to address the rising debt profile of the country.

“There is nothing wrong with borrowing, so long as the loan is used for the purpose for which it was taken.

“The N31trillion debt as recently revealed by Debt Management Office is alarming. The interest alone is on the high and will be difficult to service.

“The managers of the economy should endeavour to look inwards for better finance options rather than continue to depend on foreign loans for infrastructural development,’’ he said.

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