The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, assured that President Bola Tinubu’s administration does not intend to increase tax rates on Nigerians. He emphasized that the committee’s objective is to streamline the number of taxes and levies, ultimately reducing the tax burden for individuals and businesses.
Oyedele further clarified that their aim is to harmonize revenue collection and avoid taxing crucial areas such as investment, capital, production, and those in poverty. The committee plans to comprehensively review and re-enact major tax laws, thereby minimizing the need for frequent adjustments through annual finance acts.
Regarding the ambitious target of achieving an 18% Tax-to-GDP ratio within three years, Oyedele explained that this is based on the average tax-to-GDP ratio for Africa, excluding Nigeria. He stated that there is a substantial opportunity to enhance revenue generation by leveraging technology and tax intelligence to bridge the tax gap. Additionally, the committee intends to rationalize incentives, lower collection costs, and optimize revenue from government assets and natural resources.
President Bola Tinubu inaugurated the Presidential Committee on Fiscal Policy and Tax Reforms on August 8, 2023, appointing Taiwo Oyedele as its head. The committee’s one-year mandate encompasses fiscal governance, tax reforms, and growth facilitation as its core areas of focus.