The International Monetary Fund wants the Federal Government to implement economic policy reforms that would phase out tax holidays and exemptions in the country.
This advice was given by the Senior Resident Representative and Mission Chief for Nigeria, Africa Department, IMF, Mr. Amine Mati while speaking in lagos at a forum organised by the Chartered Institute of Bankers of Nigeria.
According to Mr. Amine, the tax holidays and waivers were eroding the Company Income Tax base and thus affecting the earnings of the country.
The IMF representative further said the Federal Government should review upwards the taxes imposed on tobacco and alcohol.
While commending the recent efforts of the government at ensuring a tighter monetary policy, Amine also further advised the government to remove the restrictions on foreign exchange and further improve the operations of the foreign exchange market.
He said “the recent introduction of the Investors and Exporters FX window is welcomed and there is a need to address market segmentation; remove FX restriction; simplify/unify the FX market; and improve operations of the FX market in line with market fundamentals.”