The International Monetary Fund has advised the Federal Government to implement taxes on fuel and telecommunications services as part of measures to increase government revenue.

In its latest recommendation, the IMF said expanding the tax base through targeted levies on consumption would help Nigeria reduce fiscal pressure and improve budget performance. The Fund noted that fuel and telecom sectors have wide consumer reach, making them viable areas for additional taxation.

According to the IMF, the proposed taxes would complement ongoing economic reforms and support public spending on infrastructure, health, and education. Officials argued that efficient collection systems must be put in place to ensure transparency and minimize burden on low-income earners.

The Federal Government has not announced a final decision on the recommendation. Any new taxes would require legislative approval and public consultation before implementation.

Economists say the proposal will likely spark debate, as Nigerians have faced higher living costs following fuel subsidy removal and naira adjustments in recent years.

Source: Punch News