Mr Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has revealed plans to simplify the tax system in Nigeria by reducing the number of taxes collected to less than ten.
Speaking at the 53rd annual conference of the Institute of Chartered Accountants of Nigeria in Abuja, Oyedele highlighted the burden faced by Nigerian business operators due to the over 62 taxes collected at different levels of government in the country. He also expressed concern about the numerous informal taxes collected across the country.
As part of his strategy, Oyedele intends to reduce the number of revenue collection agencies to one for each tier of government. Currently, there are about 16 agencies at the federal level, 25 at the state level, and 21 at the local government level. However, when considering informal taxes, the number exceeds 108.
Oyedele stated, “What I want and hope to achieve is the reduction of the number of taxes to less than 10. We want a single-digit figure. Additionally, we aim to cut down revenue collection agencies to one for each tier of government. This will allow them to focus on their primary mandate of making life easier for citizens.”
This move aims to simplify the tax system and alleviate the burden on businesses in Nigeria. By streamlining the number of taxes and revenue collection agencies, the government intends to create a more efficient and effective tax structure, positively impacting the economy.
