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President Bola Tinubu has accredited the institution of a Presidential Committee on Fiscal Policy and Tax Reforms in keeping with his promise to take away limitations to enterprise progress.

Dele Alake, Presidential Adviser on Special Duties, Communications and Strategy, disclosed this on Friday in Abuja.

He stated that the committee can be chaired by Taiwo Oyedele, Fiscal Policy Partner and Africa Tax Leader at PriceWaterhouseCoopers, PwC.

The committee comprise of consultants from non-public and public sectors and has duty for tax regulation reform, fiscal coverage design and coordination, harmonization of taxes, and income administration.

Special Adviser to the President on Revenue, Adelabu Adedeji, defined that Mr Tinubu recognises the significance of a sound fiscal coverage atmosphere and an efficient taxation system for the federal government and the economic system.

“Nigeria ranks very low on the global ease of paying taxes while the country’s Tax to GDP ratio is one of the lowest in the world and well below the African average.

“This has led to an over reliance on borrowing to finance public spending which in turn limits the fiscal space as debt service costs consume a greater portion of government revenue.

“This has resulted to a vicious cycle of inadequate funding for socio-economic development.

“While some incremental progress has been recorded over the years, the outcomes have not been transformative enough to change the narrative,” he stated.

Mr Adedeji outlined the important thing challenges in Nigeria’s tax system to incorporate a number of taxes and income assortment businesses, fragmented and complicated tax system and low tax morale.

He stated that others embody excessive prevalence of tax evasion, excessive value of income administration, lack of coordination between fiscal and financial insurance policies, and poor accountability within the utilisation of tax income.

He stated that the institution of the committee displays Tinubu’s dedication to addressing these challenges and bringing about transformative reforms in fiscal coverage and taxation.

The committee’s major goal is to boost income assortment, guarantee clear reporting, and promote the efficient utilisation of tax and different revenues to spice up residents’ tax morale, foster a wholesome tax tradition, and drive voluntary compliance.

These efforts are anticipated to not solely enhance Nigeria’s income profile but additionally create a extra conducive and internationally-competitive enterprise atmosphere.

“Our aim is to transform the tax system to support sustainable development and achieve a minimum of 18% Tax to GDP ratio within the next three years without stifling investment or economic growth.

“It should be noted that this committee will not only advise the government on necessary reforms, but will also drive the implementation of such recommendations in support of the comprehensive fiscal policy and tax reform agenda of the current administration,” Mr Adedeji added.

The committee chairman, Mr Oyedele chairs the Taxation and Fiscal Policy Faculty Board of the Institute of Chartered Accountants of Nigeria, ICAN, and is a member of the Nigerian Taxation Standards Board.

He additionally serves as a member of the Ministerial Committee on the implementation of Nigeria’s National Tax Policy.

NAN