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Tax on education should be increased by 3%

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By Nicole

TETfund boss justifies call for education tax increase to 3%.

The Tertiary Education Trust Fund (TETfund) argues that in order to advance tertiary education in Nigeria, there is a need to increase education tax collections, which is why it has called for a further increase of the education tax rate to 3%. This further underlines the recent results achieved through intervention programs, according to Mr. Sonny Echono, Executive Secretary of TETfund, who was speaking on Tuesday in Lagos at the agency’s interactive forum with the Federal Inland Revenue Service (FIRS).

With the forum’s focus being on increasing education tax revenue for the development and advancement of tertiary education in Nigeria, he claims that these intervention projects and programs are carried out by the fund in Beneficiary Institutions (BIs). This, according to Mr. Echono, had both justified and deserved the need for further increases in the school tax rate to 3%. He added that it was also consistent with the objectives of various economies, as expressed by several experts.

Taxes play a pivotal role in the nation’s educational system.

This is true not just for Nigeria but for the majority of Africa as well, where governments were already having trouble collecting enough tax money prior to the outbreak, according to what they were cited as saying by the speaker. Mr. Echono maintained that it is imperative to increase “Education Tax (EDT) Collection,” particularly at this difficult economic time. He claims that this is due to the Fund’s use of it and the crucial part it plays in the country’s educational system. He claimed that it was just one of the many important factors that made the interactive forum essential to the fund’s overall operations.

Tax receipts directly correlate with income and, consequently, with the expansion of any healthy economic system. Therefore, the issue of education tax growth, which is central to TETFund’s vision and goal for the country’s education, is always at the top of the agenda. So, it’s no accident that the main topic of discussion at this year’s event is how to encourage, enhance, and sustain the collection of education taxes by all parties.

There would be transparency and accountability to government.

He claims that in his capacity as the executive secretary and accounting officer of the fund (Education Tax), he is dedicated to making sure that it is used wisely and in accordance with the TETFund’s act and mandate. Additionally, he promised to uphold accountability to the government and openness. Echono promised to uphold the agency’s stakeholders, including the FIRS, as well as accountability and openness to the general public. According to the head of TETfund, the agency collected N189 billion in education taxes in 2021, which is N16 billion less than it did the year before. He claimed that this constituted a significant obstacle to the fund’s intervention efforts in 2022.

In order to ensure that everyone pays their fair share of taxes, Echono said it was crucial to continually launch and maintain proactive measures like auditing. He claimed that previous trends and publications on the tax gap had shown that low audit rates were a significant barrier to revenue generation, particularly in the collection of school taxes. Echono expressed confidence that the meeting would provide them the chance to examine the problems and a wide range of additional choices and opportunities for increasing education tax collection.

The theme of the forum synergies with the vision of the Service.

This year’s forum, according to Muhammad Nami, Executive Chairman of the FIRS, aligns with the Service’s goal of making taxation the centre of national development. Mr. Abubakar Sadiq Mohammed, Director/State Coordinator, Lagos Mainland East of the FIRS, represented Nami. He praised the TETfund management and board of trustees for their perseverance in organizing the discussion. According to Nami, it acted as a platform for accountability to the many stakeholders. He asserts that there has never been a period when citizens have demanded responsibility and openness from government institutions, especially during this election year.


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Abusi
Abusi
10 months ago

I agree with Tetfund. We should increase the tax on education by 3%. We need to invest more in education. Education needs critical funding in order to yield good results.

theApr
theApr
10 months ago

It has been analyzed by several experts that increase in education tax rate to 3% would help advance the tetiary education in Nigeria.

jdpumping
jdpumping
10 months ago

I am in total support of anything that would boost out educational sector if increasing the tax by 3percent would help that sector we are good to go but the money should be well spent.

Haykaylyon26
Haykaylyon26
10 months ago

If this move of increasing tax on education will help to boost and improve the sector it should be done so we can have improvement in the sector

Nwachukwu Kingsley
Nwachukwu Kingsley
10 months ago

Due to the fact that there is a pressing requirement for an increase in education tax revenues, the government has advocated for a further hike in the education tax rate.

Kazeem1
Kazeem1
10 months ago

This is a positive turn of events, as it will put even more emphasis on the recent accomplishments that have been accomplished through intervention programs.

Godsewill Ifeanyi
Godsewill Ifeanyi
10 months ago

We should know that In addition to this, it was compatible with the goals of a number of economies, as articulated by a number of specialists.

Hassan Isa
Hassan Isa
10 months ago

This applies to all of Africa, not just Nigeria, where governments were already having trouble collecting enough tax revenue before the outbreak.

Taiwoo
Taiwoo
10 months ago

Tax gap literature and historical data reveal that low audit rates are a major impediment to revenue generation, especially in the collection of school taxes.

Christiana
Christiana
10 months ago

It has been determined that there is a need to boost education tax collections; as a result, it has advocated for an additional rise of the education tax rate to the level of 3%.

Tolaniiii
Tolaniiii
10 months ago

The Tertiary Education Trust Fund (TETfund) contends that in order to improve tertiary education in Nigeria, there is a requirement for an increase in the amount of tax revenue collected from educational institutions.

Adesanyaj72
Adesanyaj72
10 months ago

The gathering would provide them an opportunity to discuss challenges and explore several other options for raising education tax revenue.

Chibuzor
Chibuzor
10 months ago

It was essential to regularly develop and maintain preventative measures, such as auditing, in order to make certain that everyone pays the amount of taxation that corresponds to their due share.

Bola12
Bola12
10 months ago

We should raise taxes on schools if doing so helps stimulate and improve the education sector.

Last edited 10 months ago by Bola12
Iyanu12345ogg
Iyanu12345ogg
10 months ago

Anything that would boost out educational sector has my full support. Education needs critical funding in order to yield good results.

Tonerol10
Tonerol10
10 months ago

Tax on education should be increased by 3%. Tax is necessary but are our country leaders are not making use of it. They we eat the the money and tell us story

Ultra0711
Ultra0711
10 months ago

An increase in tax revenue from universities is advocated by the Tertiary Education Trust Fund (TETfund) as necessary for bettering Nigeria’s tertiary education system.

Adeolastan
Adeolastan
10 months ago

Across the world tertiary education has not been free and not cheap as well but those developed nations know how to subsidise it for less privilege people to they can afford it.

DimOla
DimOla
10 months ago

Increase of tax on education by 3% used by TETFund is good for the growth and development of the tertiary institutions but this is not the right timing for such.

SarahDiv
SarahDiv
10 months ago

If TETFund is calling for increase in tax on education,they are justified because their works in evidence in most tertiary institutions but now it is unacceptable because the country is still struggling with recession.