In a reassuring move for businesses and the general populace, the Chairman of the Presidential Committee on Tax Policy and Fiscal Reforms, Mr. Taiwo Oyedele, has confirmed that the current administration under President Tinubu has no plans to impose new taxes or escalate the existing tax rates for Nigerians.
Through a series of posts on the social media platform X, Oyedele elucidated the objectives of the Presidential Fiscal Policy and Tax Reforms Committee, emphasizing their mission to alleviate the fiscal strain on businesses and citizens alike.
“We’re committed to easing the financial obligations of our people,” Oyedele elaborated. “Our core objective isn’t to impose or elevate taxes. On the contrary, we aim to consolidate and simplify the existing tax structures, facilitating ease for businesses and reducing the onus on our citizens.”
In his statement, Oyedele also clarified the rationale behind the committee’s plans. “Our nation must move away from taxing aspects that can hinder growth, such as investment and production. Our initiative is to revisit the primary tax regulations and introduce a comprehensive framework. This would negate the need for recurrent modifications via annual finance acts.”
Addressing concerns related to the nation’s tax-to-GDP ratio, the Chairman clarified that the aim isn’t about increasing the tax but optimizing revenue collection through modern methodologies. “Considering that the average tax-to-GDP ratio for African nations, excluding Nigeria, hovers around 18%, we’ve set a similar benchmark. The potential tax gap amounts to an estimated N20 trillion.”
He further shed light on the committee’s approach to bridging this gap. “There’s a vast opportunity waiting to be tapped in the form of technology and tax intelligence. Through these means, we can significantly narrow the tax chasm. Additionally, by rationalizing incentives, reducing collection costs, and maximizing revenue from governmental assets and natural resources, we can augment our revenue without imposing new tax burdens.”
Highlighting the committee’s broad scope, Oyedele mentioned that their responsibilities aren’t confined solely to the federal level. “We envision a synergistic relationship with all government tiers. We aim to ensure that fiscal policy modifications are designed and executed efficiently, making reforms tangible at even the subnational levels where applicable,” he stated.
In a climate of economic uncertainties, such confirmations from high-ranking officials offer stability to businesses and individuals. It remains to be seen how these proposed measures will be implemented and the consequent impact on Nigeria’s economic landscape.
