Indications emerged this week that the Federal Government might have accepted the advice of the Managing Director of the International Monetary Fund, Ms Christine Largard, to increase Value Added Tax (VAT), in order to plug the huge deficit in the 2016 budget.
Vice President, Professor Yemi Osinbajo, dropped the hint during a panel discussion at the World Economic Forum in Davos, Switzerland, on Thursday.
Largard said during her recent four-day working visit to Nigeria that the government needs to broaden the tax base and reduce leakages by improving compliance, enhance collection efficiency, and at the same time, bolster public finances to further meet the huge expenditure needs.
She said since the nation had the advantage of huge population, increasing the VAT rate would enable it to earn more revenue for developmental projects and service its foreign debts.
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