If the proposed National Tax Policy scales through, Nigerians are to pay more of Value Added Tax and Customs Duties.

A highlight of the draft document made available to Daily Trust suggests a low Companies Income Tax and Personal Income Tax, while jerking up the Value Added Tax (VAT).

Although the draft did not recommend the percentage increase on VAT, but the standard under the ECOWAS common tariff is about 15 percent.

Former president Olusegun Obasanjo had increased VAT to 10 percent.

The draft document said an increase in VAT and Customs duties would have an upward effect on the country's stable revenue base, "at least from the perspective of the ease of collection and yield."

Other highlights of the draft document of the National Tax Policy is a reduction in multiple taxation, by making taxes in the Nigerian tax system few in number, broad-based, high revenue-yielding and fair.

The draft National Tax Policy also envisages a shift from the current direct tax regime to an indirect tax regime anchored on consumption, in accordance with best global practices.

In moving towards indirect tax, the draft proposal envisages a gradual decrease in Companies Income Tax, CIT to 20 percent by 2009 from the current 30 per cent. There is also a proposal for a decrease in the top-rate of Personal Income Tax, PIT to 17.5 percent by 2009, from the present cap of PIT at between 30 and 40 per cent.

The draft, which will be a subject of discussion at nationwide sensitization workshops, beginning from the end of this month, states that the plan is to make the National Tax Policy to be a set of guiding principles for all taxation, a stable point of reference for all stakeholders and a tool of facilitating the economic growth and development in Nigeria.

The draft National Tax Policy wants "power to impose, increase, reduce, vary or cancel any rate of tax to be vested in the National Assembly."

Apart from the proposal to make the National Assembly the guardian of Nigeria 's tax policy, approval by the Federal Executive Council, following consultations with the National Economic Council (NEC), the draft policy document also wants the National Tax Policy to enjoy constitutional endorsement.

The draft document of the National Tax Policy is on the policy committee website.