- The World Bank advises the Nigerian government to raise the VAT rate to increase non-oil revenue.
- The World Bank suggests increasing the VAT rate from the current 7.5% to create more fiscal space and generate more non-oil revenue.
- The bank recommends improving tax administration, implementing a data-driven approach to tax audit, and introducing a simpler turnover tax for SMEs at the state level.
- The World Bank also suggests removing exemptions on petrol.
- The Nigerian government collected ₦948.07 billion as VAT in Q3 2023, a growth rate of 21.34% compared to Q2 2023.
- Agriculture, forestry, and fishing experienced the highest growth rate of 91.87% on a quarter-on-quarter basis.
- Extraterritorial organizations and bodies had a growth rate of 80.25%.
- The real estate sector had the lowest growth rate of -37.68%, followed by the construction sector with -9.54%.
- The increase in VAT collection indicates a positive trend in economic activity and consumer spending.
Source: africataxreview.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
