The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, said on Sunday night that there would be no increase in tax rates for Nigerians during President Bola Tinubu’s administration.
Oyedele, who was appointed by the President in August to lead the Presidential Committee on Fiscal Policy and Tax Reforms, made this statement on his social media platform while addressing Frequently Asked Questions regarding the committee’s objectives and progress.
He emphasized that the committee does not intend to introduce new taxes or raise existing tax rates. Instead, their primary goal is to streamline and reduce the number of taxes and levies while simplifying revenue collection processes to alleviate the burden on individuals and businesses.
The overarching objective is to prevent taxation on investments, capital, production, and poverty. The committee intends to comprehensively review and update major tax laws, reducing the need for frequent changes through annual finance acts.
Regarding the committee’s target of achieving an 18 percent tax-to-GDP ratio within three years to enhance the nation’s revenue generation, Oyedele explained, “The average tax-to-GDP ratio for Africa, excluding Nigeria, is about 18%. This forms the basis for the 18% target and the estimated tax gap of N20 trillion.”
He added, “There is a significant opportunity to increase revenue by utilizing technology and tax intelligence to close this tax gap. Additionally, we will rationalize incentives, lower collection costs, and optimize revenue from government assets and natural resources. This approach will enable us to generate more revenue without introducing new taxes.”
Furthermore, Oyedele pointed out that the committee’s mandate extends beyond the federal government and encompasses all levels of government. He stated, “The committee will collaborate with all levels of government as crucial stakeholders to ensure effective cooperation in designing and implementing necessary fiscal policy changes and implementing reforms at the subnational level where applicable.”
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