Nigerians Pay One Of World’s Highest ‘Implicit Tax Rates’ – Adesina
The president of the African Development Bank, Akinwunmi Adesina, has urged the Nigerian government to improve governance and reform its tax system, saying Nigerians pay one of the highest implicit tax rates in the world.
He acknowledged that conventional tax rates are low in the country, but distinguished those from “implicit tax”, which are “borne but are not seen nor recorded”.
“Truth be told, Nigerians pay one of the highest implicit tax rates in the world way higher than developed countries,” Mr Adesina said Thursday at the Federal Inland Revenue Service Tax Dialogue, attended virtually by President Muhammadu Buhari.
“Think of it: they provide electricity for themselves via generators; they repair roads to their neighborhoods, if they can afford to; there are no social security systems; they provide security for their own safety; and they provide boreholes for drinking water with their own monies. That in incredulous in itself. Boreholes are not the way to provide water in the 21st century. Every household should have pipe borne water!”
Mr Adesina spoke extensively on how the government can use tax to improve its revenue battered by the coronavirus pandemic.
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