The government may reduce taxes if ongoing efforts to plug revenue leakages yield the desired results, a Deputy Minister for Finance has indicated.
According to the Deputy Minister, the possibility of tax cuts will largely depend on the state’s ability to seal loopholes in revenue collection and improve compliance across key sectors of the economy. He stressed that while government is mindful of the burden of taxes on businesses and households, any decision to reduce taxes must be backed by strong and sustainable revenue performance.
Speaking at a public engagement, the Deputy Minister noted that revenue leakages continue to undermine domestic resource mobilisation, depriving the state of critical funds needed to finance development projects and social interventions.
He explained that government is intensifying measures to strengthen tax administration, digitise revenue collection systems, and clamp down on smuggling, under-declaration, and other forms of tax evasion. These measures, he said, are aimed at widening the tax net and ensuring that all eligible taxpayers meet their obligations.
“If we are able to block the leakages and improve efficiency in revenue collection, it will create fiscal space for us to reconsider some of the taxes,” he stated.
The Deputy Minister further emphasised that government’s immediate priority is to stabilise the economy, sustain revenue growth, and maintain fiscal discipline. He added that sealing revenue gaps would not only boost investor confidence but also reduce the need for excessive borrowing.
He assured businesses and the general public that the Finance Ministry remains open to reviewing tax policies in consultation with stakeholders, but cautioned that any adjustments would be guided by data and the overall macroeconomic outlook.
The remarks come amid growing calls from industry players and civil society groups for a reduction in certain taxes to ease the cost of doing business and support economic recovery.
