The Presidential Committee on Fiscal Policy and Tax Reforms has taken a significant step towards enhancing Nigeria’s tax system. By urging state governors to suspend low-revenue taxes, commonly referred to as ‘nuisance taxes,’ the committee aims to streamline the tax regime and boost the nation’s economic prospects.
In an exclusive interview with Taiwo Oyedele, the committee’s Chairman, on Channels Television, he emphasized the detrimental impact of these low-revenue taxes, stating that they contribute little to a state’s revenue while burdening citizens. Oyedele revealed that discussions with state governors are already underway, with proactive measures being taken to ensure the swift implementation of this initiative.
The need for this reform is underscored by the alarming disparity between widespread tax collection and the inadequate flow of revenue into government coffers. Furthermore, concerns were raised about local governments reporting less than N50 billion in revenue collection for 2022, as per data from the National Bureau of Statistics. These issues are at the forefront of the committee’s agenda as they strive to drive impactful change.
A pivotal component of the committee’s strategy is the proposed Emergency Economic Intervention Bill, which is slated for submission to the Federal Executive Council for approval. Upon obtaining FEC endorsement, the bill will progress to the National Assembly, with the expectation of receiving presidential assent by the end of the first quarter.
The initiative comes in response to the considerable challenges posed by multiple taxations, which have created operational difficulties for businesses operating across different levels of government. The urgency of addressing these challenges led to the inauguration of the Presidential Fiscal Policy and Tax Reforms Committee on August 8, 2023.
Meanwhile, President Bola Tinubu has amplified the focus on global taxation as a means to rectify the imbalances in the international tax regime. Speaking at the third South Summit of the Group of 77 and China in Kampala, Uganda, he advocated for a speedy review of global taxation, emphasizing its critical role in fostering sustainable development and economic self-reliance, especially for developing countries.
Tinubu’s call for a more equitable global tax system was underscored by Nigeria’s active participation in championing a historical initiative at the United Nations, urging for a Framework Convention on Tax. This landmark resolution signifies a significant step towards establishing a fairer and more inclusive global tax system, reflecting a shared commitment to addressing existing inequities.
Additionally, President Tinubu reaffirmed Nigeria’s dedication to advocating peaceful solutions in global conflict zones, emphasizing the country’s steadfast commitment to stability and prosperity within the African continent and the global community. His comprehensive address at the summit underscored Nigeria’s unwavering commitment towards multilateralism, collaborative international cooperation, and addressing pressing global challenges such as climate change, cybersecurity, and terrorism.
As the summit continues to convene prominent leaders and international organizations, including United Nations Secretary-General Antonio Guterres, the significance of these deliberations is becoming increasingly apparent. With Nigeria’s proactive stance on tax reforms and its commitment to fostering global cooperation, the country is poised to play a pivotal role in shaping a more equitable and prosperous international economic landscape.
