Lagos – The Director General of the Lagos Chamber of Commerce and Industry (LCCI), Mr Muda Yusuf, has said that company income tax can reduce governments’ reliance on borrowing for budget successes.
Yusuf told the News Agency (NAN) in Lagos on Tuesday that the poor tax returns from the informal sector accounted for why the country had had to always borrow for its development.
He said that the incorporation of more firms into the nation’s tax net would reduce budget deficits that had become a recurring decimal in the last decade.
Yusuf said that the 2016 budget allocation for debt servicing which was N1.36 trillion would not have arisen if the country had perfected its tax collection system.
“The Federal Government needs to collect tax from every company operating in the country and ensure that they pay what is due to them.
“It is a fact that debt servicing is not pleasant for any economy and will slow the pace of infrastructure development as well as the debtor nation’s independence.
“And there should be a conscious effort to retrieve expected proceeds from projects built with international loans,’’ he said. (NAN)