The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has assured Nigerians that there will be no imposition of higher tax rates under the leadership of President Bola Tinubu. Oyedele made this statement while addressing questions on the committee’s objectives and progress.
He emphasized that the committee’s primary goal is not to introduce new taxes or increase existing tax rates but to streamline and reduce the number of taxes and levies imposed on Nigerians. The aim is to ease the tax burden on individuals and businesses, avoiding taxation on essential areas like investment, capital, production, and poverty.
Chairman of the Presidential Committee on Fiscal Policy and Tax Oyedele also highlighted that the committee plans to comprehensively review and reform major tax laws to minimize the need for frequent changes through annual finance acts. The objective is to create a more stable and predictable tax environment.
Regarding the target of achieving an 18% tax-to-GDP ratio within three years, Oyedele explained that this goal aligns with the average tax-to-GDP ratio for Africa, excluding Nigeria, which stands at about 18%. He noted that bridging the estimated tax gap of N20 trillion is feasible through improved technology and tax intelligence, rationalization of incentives, cost-effective tax collection, and optimization of revenue from government assets and natural resources.
Oyedele emphasized that the committee’s mandate extends beyond the federal government to encompass all levels of government. They intend to collaborate effectively with state and local governments to implement fiscal policy changes and reforms at various levels, as needed.
In summary, the Presidential Committee on Fiscal Policy and Tax Reforms, under the leadership of President Bola Tinubu, aims to simplify and reduce the tax burden on Nigerians while working toward achieving a competitive tax-to-GDP ratio through efficient revenue generation and collaboration with all levels of government. Visit thedailycourierng