If there is a new reality dawning on Nigerians and businesses, it is the fact that taxation is about to be a mainstay in the economy. African government’s and particularly Nigeria, will as it is learn to depend more on taxes to supplement fiscal revenues.
The world bank has now weighed in on this following comments from the Chief Economist for Africa, Mr. Francisco Ferreira opines. According to him, we need to “tax a little bit more”.
”In fact, there’s probably room for African governments to tax a little bit more. But the important thing is who they are taxing and who they are providing the services for. What we want is progressive taxation, where the tax incidence falls mostly on the rich. And as we all know, Africa has many rich people who can pay taxes.
“So if the taxes fall on the right people and if they are used not for corruption to provide good public services like the much needed infrastructure and education and health spending, then it helps to diversify the pool of resources which governments use and that’s no bad thing. In fact to a number of countries, I advise them that they probably should diversify not only their economies but also sources of their fiscal revenues.
“The key thing as I say is to ensure that the people are not paying the bulk of those taxes but in fact receiving the bulk of the benefits of those spending.”