The Debt Management Office (DMO) has stated that N10 per litre tax on non-alcoholic and carbonated drinks will improve revenue generation.

This was made known on Sunday by Patience Oniha, director-general of the DMO in an interview with the News Agency of Nigeria (NAN) in Abuja.

According to Oniha, revenue generation was a major constraint of the federal government.

Oniha said this impacts the country’s debt situation negatively.

Oniha said systemic resource mobilisation has been compounded by recent economic recessions, noting that most viable solution to the country’s challenge was to grow revenue streams and plug all leakages.

She explained that several measures were being taken by the federal government under the strategic revenue growth initiatives (SRGI) to improve revenue and fiscal prudence.

“These measures include improving the tax administration framework, including tax filing and payment compliance improvement,” Oniha said.

She also said other measures include evaluation of the process and policy effectiveness of fiscal incentives.

Oniha added that the federal government was also taking measures to identify and plug existing revenue leakages to enhance tax compliance and reduce evasion.

“To further enhance independent revenue collection, the government aims to optimise the operational efficiencies and revenue generation focus of government agencies,” she said.

“Introduction of new and further increases in existing pro-health taxes like the excise on carbonated drinks will also enhance revenue generation.”