Nigeria’s Next President Needs to Hike Taxes – UK Envoy

Nigeria's Next President Needs to Hike Taxes - UK Envoy
  • As Nigeria’s presidential election draws near, the United Kingdom’s envoy has revealed several things that the incoming president needs to focus on.

Nigeria’s Next President Needs to Hike Taxes is one of the major points reeled out by the British High Commissioner to Nigeria, Catriona Laing. She pointed out that the initiative of a tax hike would help raise additional revenue that could be invested in public services such as infrastructure and education.

Nigeria’s Next President Needs to Hike Tax: More on the Charge

While featuring on Channels Television’s election program, The 2023 Verdict earlier in the week, Catriona also mentioned two other vital decisions that the next president needs to take.

The second decision, according to her is to remove the fuel subsidy which is draining but ensure to do it in a way that won’t bring further inconvenience to the masses.

The third one is to deal with the multiple exchange rates to ensure more foreign investments.

Catriona Admonishes The Incoming President

Besides stating three key actions that she thinks will help the incoming government build a better Nigeria, Catriona also spoke a few words of admonishment.

According to her, if the incoming government hopes to have a flourishing tenure, it must practice inclusiveness and also ensure that youths and women are prioritized.

The succeeding president should not be an island but instead, find a way to collaborate with other political parties.

Catriona also condemned the senseless and prevalent violence that has been unfolding in the lead-up to the presidential election.

She mentioned that the United Kingdom is monitoring the next elections and is worried about the safety of Nigerians.

The UK hopes the election goes without a hitch and that the incoming president performs excellently.

Significance of Tax Hikes

Technically speaking, tax hikes can lead to the following for Nigeria:

  • Tax hikes can help to improve the country’s fiscal stability by reducing the government’s reliance on oil revenue and diversifying its revenue base.

Tax hikes can help to reduce income inequality by increasing the government’s ability to provide social welfare programs and public goods that benefit lower-income households.

The additional revenue generated by tax hikes can be used to finance investments in infrastructure, which can stimulate economic growth by improving the business environment, enhancing productivity, and reducing transaction costs.

Tax hikes can incentivize taxpayers to comply with tax laws, as individuals and businesses are more likely to pay their taxes when they perceive that others are also paying their fair share.

However, it is important to note that tax hikes can also have negative impacts, such as reducing consumer spending power, increasing the cost of living, and potentially discouraging foreign investment.

Therefore, it is crucial for the government to carefully consider the potential effects of tax hikes and ensure that they are implemented in a way that balances the need for additional revenue with the potential negative impacts on the economy and society.

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