There are strong indications that the Presidential Committee on Tax Reforms and Fiscal Policy in Nigeria, inaugurated by President Bola Tinubu, is currently strategizing measures to revolutionize the tax collection process throughout the country.
The committee’s chairman, Taiwo Oyedele, revealed this development at the State House in Abuja on Tuesday, following the submission of their initial report on the remarkable achievements made in the first 30 days to President Bola Tinubu.
Accompanied by the chairman of the Federal Inland Revenue Service, Zacch Adedeji, Oyedele emphasized that the committee’s primary objective is to streamline tax policies at all levels of government and significantly reduce the overall number of taxes to a single digit.
Moreover, Oyedele highlighted that Nigeria is currently in a crucial phase of thoroughly reviewing its tax laws and regulations.
He further stated that the committee has been engaging with the Senate and the House of Representatives to address the necessary reforms, demonstrating their commitment to the success of the project.
Oyedele also unveiled the commencement of public consultations and stakeholder engagement as part of efforts to address the controversies surrounding the Value Added Tax (VAT) law. He asserted that sustainable solutions will only come from Nigerian citizens and not from the court of law.
Today’s presentation of the report to Mr. President signifies the formalization of the process. However, he expressed optimism that once granted approval, the implementation phase will commence immediately, likening it to switching on a tap.
He further emphasized the enormity of the task ahead, describing the current milestone as merely the beginning. The subsequent phase, which the committee is currently embarking on, involves critical reforms that include rewriting major tax laws to address the persistent issue of multiple taxes.
He expounded on the issue, stating, “We currently have over 60 taxes and levies officially collectable by federal, state, and local governments. Unofficially, the number surges to over 200, making life unnecessarily burdensome for our people. Hence, our objective is to consolidate all these taxes and levies into a single digit figure.”
The Presidential Committee on Tax Reforms and Fiscal Policy is poised to usher in a new era of simplicity, efficiency, and fairness in Nigeria’s tax system. This comprehensive overhaul is expected to alleviate the tax burden on citizens and promote economic growth and development nationwide.
