President of the African Development Bank (AfDB), Dr. Akinwunmi Adesina has cautioned the Federal Government to halt tax increment.
Adesina said the fact that Nigeria taxes are relatively lower does not justify incessant tax raise.
According to him, it will be a double hazard to over-tax citizens who provide for themselves basic amenities which the government has failed to offer.
The AFDB boss gave the advice yesterday in Abuja while delivering a lecture at the annual conference of the Institute of Chartered Accountants of Nigeria (ICAN).
He also listed facilities such as portable water, electricity, security and neighbourhood roads among others.
Adesina said: “Low tax to Gross Domestic Product (GDP) rate in the country is not an excuse for the Federal Government to keep increasing taxes.
“While other countries with high tax rates have functional free education and free health care system among others, such cannot be said for Nigeria.”
“In Nigeria, the inefficient system has imposed an implicit tax on the Nigerians as the people are made to provide basic essential facilities that should have been made available by the government.
“While tax rates are relatively low in Nigeria, it simply is not an excuse to keep increasing taxes.”
In an attempt to boost tax revenue in February last year, the federal government raised VAT from five per cent to 7.5 per cent.
