Kaduna based financial expert, Friday Agbo, has identified multiple taxation as one of the factors affecting Nigeria’s economic growth.
Speaking during a briefing in Kaduna, weekend, Agbo said there was the need to modify the country’s present tax system to enable resource mobilisation.
The financial expert explained that Nigeria should adopt mixed economic policies and unified tax system to maintain separation of power and create synergy among different level of governments.
According to him, all company income tax via withholding tax and direct payment be attributed to the Federal Government, while Value Added Tax ( VAT) be attributed to local government, adding that VAT input be set at zero and VAT output should be between 0.1 percent to 5 percent.
“For example, every barrel of crude oil drilled from a local government area, that local government has 43 percent of VAT, the state government has 33 percent of VAT, the Federal Government has 23 percent of VAT and the central bank (national reserve) has 1 percent of VAT.
“Revenue generation, collection, monitoring, reconciliation and economic policy document should be a function of a synergetic relationship between Federal Inland Revenue Service (FIRS); the state internal revenue service, the LG revenue authority (monitor); the banks (revenue collection agents); CBN (fund warehousing).”
Agbo averred that the present structure in Nigeria has a problem, adding that the panacea would be restructuring.
He canvassed the need for a system that proffers solution to Nigeria’s problems by taking cognizance of the country’s political, economic and cultural variables.
