The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has maintained that President Bola Tinubu’s led administration does not intend to introduce new taxes or impose higher tax rates on citizens.
He made this known on his X (formerly Twitter) handle while providing answers to some Frequently Asked Questions (FAQs).
It would be recalled that the President inaugurated the Committee in August to transform the tax system to support sustainable development, while, at the same time, achieving a minimum of 18% Tax to GDP ratio within the next three years.
“The Committee shall have as its objective the advancement of viable and cost-effective solutions to issues such as the multiplicity of revenue collection agencies, the high cost of revenue administration, the excessive burden of compliance on ordinary taxpayers, the lack of effective coordination between fiscal and other economic policies within and across levels of government and poor accountability in the utilisation of tax revenues,” the President said while inaugurating the Committee.
Responding to the question of whether the public should expect more taxes and frequent changes to the tax laws, Oyedele 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.”
Also, on the approach the Committee intends to use to achieve a tax-to-GDP ratio of 18% within the next three years, he 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.”
He further stated that the Committee was set up not just to advise the government but to support the implementation of recommended reform measures.
“The committee’s assignment is being carried out to the highest degree of independence driven by national interest within the context of modern-day economic realities and emerging issues within the international community,” he noted.
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