Sen. Udo Udoma, Minister, Budget and National Planning, says the Federal Government is targeting 15 per cent tax contribution ratio of Gross Domestic Product (GDP) through improved tax collection strategies. Udoma stated this on Friday at the private equity summit organised by Udo Udoma and Belo-Osagie Law Firm with the theme “Nigeria: Still Open for Business” in Lagos. He said that Nigeria’s GDP ratio presently at six per cent was one of the lowest in the world when compared with India’s 16 per cent, Ghana’s 15.9 per cent and South Africa 27 per cent. Udoma said that government would achieve the target through improved tax collection and not increment in tax rates.
“We don’t want to increase our tax rate but we want to increase tax collection to achieve the desired growth”, he said. The minister said that the target would be achieved through Voluntary Assets and Income Declaration Scheme (VAIDS) that promotes voluntary tax compliance. Udoma said that the present government’s strategic focus was to increase revenue generation to reduce reliance on borrowing to fund the budget. He said that effective implementation of the Economic Recovery and Growth Plan (ERGP) would lead to increase in revenue generation.
Udoma said that government want to grow both the oil and non-oil sectors to boost revenue generation. Udoma also said that government had increased oil production to 2.5 million from 2.2 million barrel per day with peace in the Niger Delta.