Tax Reform: 1966-67

Authors

Research Department, Central Bank of Nigeria, Abuja

Publisher

Central Bank of Nigeria

Keywords

Taxation, Tax reforms-Nigeria

Abstract

This article examines tax reforms in Nigeria which was undertaken to restructure indirect and direct (individual and company). The article observed that the reform was undertaken because of the low current revenue which led to a shortfall in the calendar year budget equivalent of £178.8 million by 10.8 per cent. The drop in revenue was caused by a fall in demand for dutiable imports. Although current revenue fell, current expenditure rose by 13.0 per cent to £88.6 million, due mainly to a rise of about 67 per cent in public debt servicing and unplanned expenditures related to the political situation in the country. The recurrent budget surplus, as a result, was reduced from £16.l million in 1965 to £10.2 million in 1966. This situation led the Federal Government, late in 1966, to review its tariff policy in the direction of liberalization in a bid to raise the level of imports, and thereby increase revenue.

Author Bio

The authors are staff of Research Department, Central Bank of Nigeria.

Publication Title

CBN Economic and Financial Review (EFR)

Issue

1

Volume

5

Recommended Citation

Research Department (1967). Tax Reform: 1966-67. Economic and Financial Review. 5(1), 12-26.