No plan to increase individual taxes – FG

No plan to increase individual taxes – FG
January 28 21:10 2016

The Federal Government on Thursday said it had no plans to increase taxes as a way of offsetting the deficits in the 2016 Budget.

The Minister of Budget and National Planning, Udoma Udo Udoma, said the government will rather concentrate on improving the collection of taxes.

He spoke with State House correspondents at the end of the National Economic Council (NEC) meeting presided over by Vice President Yemi Osinbajo.

The minister was accompanied by governors Akinwunmi Ambode (Lagos), Willy Obiano (Anambra) and Badaru Abubakar (Jigawa).

He emphasized that individual taxes will not be increased in order not to increase the suffering of Nigerians.

“We expect about 20 per cent increase in VAT collection, which is conservative in terms of our revenue projections. We are expecting much more than that.

“With reference to the budget, one thing we are determined not to do is to cut any of those capital projects, because we need them to stimulate the economy. We are going to work with the National Assembly, to see how we can get savings.

“One of the areas we are looking at is our cash call elements. The minister of state for petroleum is looking at how we can cut our cash call elements which is about N1trillion by innovative financing. So he is discussing with some oil companies and looking for some innovative financing which might pick up some of the financing so that we reduce our financial output and contribution by the federal government,” he said.