Taiwo Oyedele, chairman of the presidential committee on fiscal policy and tax reforms, says Nigeria can generate more revenue without raising taxes and avoid hurting the economy.
In a recent interview, Oyedele said the right way to go is not to introduce more taxes.
According to Oyedele, with the use of data, intelligence, and technology, Nigeria can close the tax gap by ensuring people who have not been paying taxes begin to pay.
He said the committee think having fewer taxes is broad-based, and easy to collect.
“Certainly, you know the whole idea is that we have done whatever we are doing now for decades, and it hasn’t produced the right result,” Oyedele said.
“We have over 60 different taxes and levies, but we are barely even collecting enough money to fix roads.
“By the way, the entire budget, that’s the Federal Government’s of about N29 trillion plus all the states in Nigeria about N15 trillion – if you add it all, it comes to about N44 trillion. That’s around $30 billion.
“That $30 billion is even less than the budget of Kenya which is around $32 billion. It is barely a quarter of South Africa’s budget at $130 billion. And of course, it’s even less than the budget of New York City, not even just New York State. So, clearly, Nigeria is a poor country with the potential to be a wealthy country.
“So, we do believe based on the analysis we have done and the data available to us that the right way to go is not to introduce more taxes. And in fact, if you’re gonna raise the rates of any tax, it has to be something that we’re doing as a result of the consolidation and harmonisation.
“We do think that having fewer taxes are broad-based, easy to collect, and do not place a burden on the bottom of the ladder of society is the way to go.
“And by using data, intelligence, and technology, we can close the tax gap so that people who have not been paying before begin to pay – who have been identified as people who should be paying – and the poor people should be legitimately exempted, particularly nano, micro businesses and low-income earners.”
Oyedele said the committee believes that with all these, Nigeria can easily more than double its revenue within a period of two to three years.
