The World Bank has urged the federal government to increase the Value-Added Tax VAT rate as a measure to boost non-oil revenue into the FG’s coffers.
This advice was contained in the World Bank’s latest Nigeria Development Update (NDU) themed “Turning The Corner, From Reforms and Renewed Hope to Results” launched in Abuja on Wednesday.
In the report, the World Bank reiterated the urgent need to raise non-oil revenues by increasing Value Added Tax (VAT) rate while allowing for input tax credits, improving tax administration, adopting a data-driven approach to tax audit, as well as introduce a simpler turnover tax on Small and Medium scale Enterprises (SMEs) at state level rather than various existing fees and levies.
