Follow Us on Google
From Isaac Anumihe, Abuja
Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, yesterday, lamented that the 83 per cent debt service to revenue is posing a serious threat to the economy.
To this end, the Federal Government said it is striving to reduce it at 50 per cent over the medium term period and ultimately take it down to 30 per cent.
Speaking in Abuja during the presentation of 2023 Budget, the minister said government was taking steps to shore up its revenue base.
Such steps include to grant tax rebate, make provisions for free registration etc.
“As at August 31, Nigeria’s debt service to revenue ratio was at 83 per cent and that is why I said that what we have is a revenue challenge and we have to do everything we can to increase our revenue. Our policy target is to keep it at no more than 50 per cent over the medium term period and ultimately reduce it down to 30 per cent but we are currently over 50 per cent debt service to revenue” he said.
On how to shore up revenue, the minister explained that tax rebate should be granted with free registration at Corporate Affairs Commission (CAC) is ongoing.
“It’s first of all to try to get the sector formalised. That’s one of the reasons we make provisions for free registration and online registration. You can actually go to CAC website and register. If you have all the documents, within 48 hours you’ll get your certificate. So, once you register, the process of registration includes you’ll provide your TIN, you’ll provide your account number and BVN also. It’s easier to track those companies and since that provision was given, the Ministry of Industry Trade and Investment is reporting that there are more of these informal sector operators that are not formalised. Remember that I said we granted tax rebate for small businesses but the businesses were still expected to file in returns to show that their turnover is below those threshold that’s either entitled to zero CIT or 20 per cent CIT. So, gradually the tax net is able to include some of these informal sector businesses. More currently, the JTB is chaired by the chairman. FIRS chairman is working with each state chairman of FIRS as a member. They are currently working at upgrading the process of TIN to include NIN and you know that there is a lot of progress that has been made in the NIN registration process.
