The Federal Executive Council (FEC) has approved a new National Tax Policy (NTP) proposed by the Federal Ministry of Finance, which seeks to provide a set of guideline, rules and modus operandi that will regulate Nigeria’s tax system.
The document, which will be presented to the national Economic Council (NEC) next month
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Explaining the details of new tax policy, minister of finance, Mansur Muhtar, stated that the NTP would enhance government revenue alternative base outside oil and gas.
He said the overriding philosophy of the policy was based on the concept of sustainable platform for Revenue Generation and healthy competition, which is balanced with the need for an effective and efficient tax system.
According to him, it would uphold the application of fiscal federalism in the generation and expenditure of revenue by government at all levels as stipulated by the Nigerian constitution”. Muhtar further disclosed that the objective of the new tax policy was to promote fiscal responsibilities and accountability, facilitate economic growth and development, provide the government with stable resources for the provision of public goods and services, address inequities in income distribution, provide economic stabilization, pursue fairness and equity and correct market failures and imperfection