The Federal Government has insisted that only the collection of more taxes and effective blocking of revenue leakages were realistic measures that would cut borrowings and reduce the country’s high debt profile.
Minister of Finance, Budget and National Planning, Zainab Ahmed made this known at a workshop on tax expenditure organised by the ECOWAS Commission under the Context of the Implementation of the Support Programme for Tax Transition in West Africa, PATF in Abuja.
The workshop is targeted at examining directives on harmonisation of tax expenditure management practices and the monitoring and evaluation of tax transition in ECOWAS member states.
Zainab, who was represented by the Director, Technical Services in the Ministry, Fatima Hayatu, noted that the issue of tax expenditure was a great concern for the government.
It will be recalled that the Federal Government had in July said the country’s debt service cost in the first quarter of 2022 was 1.94 trillion naira, 310 billion naira higher than the actual revenue received during the period indicating that debt service cost outweighs its revenue. The Minister noted that the government will commence the rationalisation of tax exemptions by phasing out antiquated pioneers and other tax incentives for matured industries.
