Dr. Augustine Kutu, an Assistant Professor at the University of Western Ontario, Canada, has stated that Nigeria's proposed tax reform bill will enhance tax compliance and diversify revenue streams.
Speaking in an interview with the News Agency of Nigeria (NAN) in Abuja, Kutu highlighted that the bill's Value Added Tax (VAT) sharing formula would drive economic growth and promote fairness among regions.
He noted that Nigeria has undergone several tax reforms, including the introduction of the Income Tax Management Act (1961), VAT (1993), and the Structural Adjustment Programme (1980s).
The country also implemented the Consolidated Revenue Code to boost revenue generation and reduce its reliance on oil.
Read also:
However, Kutu acknowledged the controversy surrounding the proposed VAT sharing formula, which allocates a higher percentage to states where revenues are generated.
To ensure fairness, he recommended a 40-40-20 model—40% based on equality, 40% on derivation, and 20% on population.
He urged governments to leverage technology for tax assessment and collection, ensuring efficiency and capturing revenue from digital businesses like social media and music streaming platforms.
