• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Economy GDP

IMF urges Nigeria, poorer countries to explore untapped potential of personal income tax

Says developing countries have shown remarkable progress in using the personal income tax.

Ubah Jeremiah Ifeanyi by Ubah Jeremiah Ifeanyi
March 28, 2022
in GDP, Macros, Monetary Policy
IMF revises Nigeria GDP growth to 3.2% from 3.1% due to improved fight against Oil theft
Share on FacebookShare on TwitterShare on Linkedin

Nigeria and other developing countries have been recommended by the International Monetary Fund to investigate the revenue potential of personal income tax and, if necessary, expand it.

This was revealed in a new IMF study that looked into the possibility of expanding the use of fiscal instruments in developing countries, where many people live on low wages.

According to the IMF, many governments seeking long-term economic recovery from the pandemic must raise considerable sums of money in the most equitable manner possible.

RelatedStories

Nigeria vs the World Bank: Truth, Myths, and Money Moves – Drinks and Mics

Nigeria vs the World Bank: Truth, Myths, and Money Moves – Drinks and Mics

May 17, 2025
IMF projects reduced economic growth for Sub-Saharan Africa

Surging electricity demand for AI could create new challenges for global economy – IMF 

May 14, 2025

What the IMF is saying

IMF said, “Low-Income Developing Countries (LIDCs) that improved their tax-to-GDP ratios relied on a broader set of tax instruments and not exclusively on the PIT, suggesting that a successful revenue mobilization strategy of developing countries requires a comprehensive approach covering a wider range of taxes.”

Although progress has been made by some emerging economies, the Washington-based lender says there is room for improvements.

“Developing countries have shown remarkable progress in using the personal income tax,” the IMF stated.

The IMF said, “But gradual changes have been taking place. In the two decades preceding the pandemic, income tax revenue more than doubled in low-income countries, rising from the equivalent of 1 percent of GDP to 2.1 percent, while emerging markets saw an increase from 2.1% to 3.1%. These were also reflected in share of the tax in overall tax intake, which went from 5 percent to 8 percent of total tax revenue in low-income countries and from 9% to 11% in emerging markets.”

  • According to the International Monetary Fund, the driving force behind the increase in personal income tax revenues is the reduction in the size of the informal sector, as measured by the share of self-employed workers in the labour force and the share of agriculture in the economy, as well as increases in per capita income and the size of the public-sector wage bill.
  • Improvements in tax administration could also help improve revenue, however, this applies to other taxes as well. Furthermore, the pandemic’s faster migration to digitalized services may pave the path for better income tax planning and enforcement.
  • The IMF stated that taxes were necessary for inclusive growth and should play a bigger role in the economy. IMF said, “income taxes can still be important for inclusive growth if properly designed and revenues well spent. Our research—together with the history of the tax in advanced economies—shows that the personal income tax should evolve into a more significant source of revenue as countries develop.”

What you should know

  • Nigeria recorded a total tax collection of about N8.8 trillion in 2020 translating to a tax to GDP ratio of 6.1%.
  • The Federal Inland Revenue Service (FIRS) has disclosed that it generated the sum of N4.396 trillion in taxes from the non-oil sector in 2021 compared to N2.507 trillion collected in 2017.
  • Because it is difficult to get dollars, Nigeria has allowed enterprises with outstanding foreign currency tax bills to pay in Naira, giving the organizations the chance to pay cheaper taxes
  • Federal Inland Revenue Service(FIRS) has called for a comprehensive aggregation of revenues generated at the national and sub-national levels in Nigeria. The organization also review the challenges of the “informal sector which constitutes about 70% of businesses in Nigeria and the reform options available to bring them into the tax net”

Follow us for Breaking News and Market Intelligence.
Tags: IMFInternational Monetary FundPersonal Income Tax
Ubah Jeremiah Ifeanyi

Ubah Jeremiah Ifeanyi

For further inquiries about this article, contact: Email: Ifeanyi.ubah@nairametrics.com Twitter: @ubahjc Linkedln: Jeremiah Ubah

Related Posts

Nigeria vs the World Bank: Truth, Myths, and Money Moves – Drinks and Mics
Digital Media

Nigeria vs the World Bank: Truth, Myths, and Money Moves – Drinks and Mics

May 17, 2025
IMF projects reduced economic growth for Sub-Saharan Africa
Economy

Surging electricity demand for AI could create new challenges for global economy – IMF 

May 14, 2025
Tinubu appoints Omolola Bridget Oloworaran as new PenCom DG  
Economy

Nigeria exits IMF debtor list amid Tinubu’s fiscal reform push 

May 8, 2025
At IMF Nigeria is winning praise, but the money isn’t flowing—this is why  
Op-Eds

At IMF Nigeria is winning praise, but the money isn’t flowing—this is why  

April 30, 2025
Kristalina Georgieva, AI
Economy

IMF urges Nigeria to expand tax base, deepen regional trade for economic stability 

April 25, 2025
Tinubu says petrol subsidy removed to reset Nigeria’s economy  
Economy

World Bank projects 3.6% economic growth for Nigeria in 2025, more optimistic than IMF’s forecast 

April 24, 2025
Next Post
Russia/Ukraine: Human rights organisation to list names of abducted civilians

Russia/Ukraine: Human rights organisation to list names of abducted civilians

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng
first bank
Zenth Bank








DUNS

Recent News

  • NITDA signs agreement with Japanese consortium to build Abuja startup hub  
  • Oyo Govt approves N63.4 billion to renovate Government House 
  • NDLEA to establish full-scale drug control operations at Benin Airport 

Follow us on social media:

Recent News

NITDA signs agreement with Japanese consortium to build Abuja startup hub  

NITDA signs agreement with Japanese consortium to build Abuja startup hub  

June 18, 2025
Oyo State to upgrade primary health centers to 24 hours medical centers

Oyo Govt approves N63.4 billion to renovate Government House 

June 18, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics