The IMF has recommended Nigeria introduce telecom excise duties and extend VAT to fuel products to shore up government revenues, even as Nigerians reel from soaring costs.
Just when Nigerians thought the tax burden couldn’t get heavier, the IMF has other ideas.
The International Monetary Fund, in its latest Article IV consultation report on Nigeria, is urging Abuja to slap excise duties on telecom services and extend VAT to fuel products to boost revenue and create fiscal space for development spending, Nairametrics reports.
The Fund acknowledged rising poverty and food insecurity, advising government to first establish a solid cash transfer system before rolling out fresh taxes that could deepen hardship.
Ironically, the recommendation comes after Nigeria scrapped a 5% telecom excise duty just last September — and amid a fresh 50% hike in telecom tariffs.
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