According to Mr. Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Nigeria currently has over 60 different forms of taxes and levies. He highlighted that many of these taxes disproportionately affect the poorer segments of society. Oyedele’s committee is working to streamline and reduce the number of taxes to less than 10, which would represent an 83.33% reduction. The aim is to create a more efficient and less burdensome tax system for both citizens and the government.
Additional Information: Mr. Oyedele emphasized that the multitude of taxes often originate from local governments, but the revenue collected is not consistently remitted to the central government. He cited examples like the wheelbarrow tax and pure water tax as burdens on the poor. Oyedele also mentioned that a lack of trust in the government is one of the reasons behind tax non-compliance, and called for increased transparency and accountability.
Analysis: The recognition of the excessive tax burden in Nigeria, especially on the economically disadvantaged, is a crucial step toward tax reform. Streamlining and simplifying the tax system can not only alleviate the burden on citizens but also improve revenue collection for the government. It’s essential to address issues of transparency and accountability to build trust and encourage tax compliance among the population. This move can lead to a fairer and more efficient tax system in Nigeria.
