Taiwo Oyedele, the Chairman, of the Presidential Committee on Fiscal Policy and Tax Reforms, has revealed that the administration of President Bola Tinubu would not impose higher tax rates on Nigerians.
He disclosed this via his official X-app handle while answering FAQs from the public on the objectives of the committee and giving progress reports on the work done by the committee as they aim to “meet our deliverables on time according to plan”.
Reducing the number of taxes and levies
Mr Taiwo said that the objective of the committee is to reduce the number of taxes and levies imposed on Nigerians. He said there is no plan to increase taxes, rather the committee would “harmonise revenue collection” to reduce the tax burden. He said:
“We do not intend to introduce new taxes or impose higher tax rates. Rather, our mandate is to reduce the number of taxes and levies while harmonising revenue collection to reduce the burden on the people and businesses.
“The objective is to avoid taxing investment, capital, production or poverty. We plan to review and re-enact the major tax laws in a holistic manner thereby limiting the necessity for frequent changes through annual finance acts.”
Achieving 18% tax-to-GDP ratio
President Tinubu during the inauguration of the Presidential Committee on Fiscal Policy and Tax Reforms which Mr Taiwo Oyedele heads, had tasked the committee to enhance Nigeria’s revenue generation and business environment, as the FG aims to achieve an 18% Tax-to-GDP ratio within 3 years.
Responding to questions on how the committee aims to meet the 18% target while not increasing taxes, Taiwo said:
“The average tax to GDP ratio for Africa excluding Nigeria is about 18%. This is the basis for the target of 18% and the estimated tax gap of N20 trillion.
“There is a huge opportunity to generate revenue by leveraging technology and tax intelligence to close the tax gap. In addition, we will rationalize incentives, reduce the cost of collection, and optimise revenue from government assets and natural resources.
“This way we can generate more revenue without introducing new taxes.”
President Bola Tinubu had on 8th August 2023 inaugurated the Presidential Committee on Fiscal Policy and Tax Reforms, which is headed by Mr Taiwo Oyedele.
The President directed the Committee to achieve its one-year mandate, which is divided into three main areas: fiscal governance, tax reforms, and growth facilitation.Follow us on social media