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Tuesday, July 23, 2024

Oyedele Assures That Tinubu Does Not Intend To Enforce Increased Tax Rates For Nigerians

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, on Sunday night,  said no higher tax rates would be imposed on Nigerians under President Bola Tinubu.
Oyedele, who was inaugurated in August by the President to head the Presidential Committee on Fiscal Policy and Tax Reforms, disclosed this on his X handle while providing answers to Frequently Asked Questions on the goals and work done by the committee so far.
Oyedele, who added that no new tax would be introduced said that the committee’s objective is to downsize the number of taxes levied on Nigerians.
He said, “We do not intend to introduce new taxes or impose higher tax rates. Rather, our mandate is to reduce the number of taxes and levies while harmonising revenue collection to reduce the burden on the people and businesses.  The objective is to avoid taxing investment, capital, production or poverty. We plan to review and re-enact the major tax laws in a holistic manner thereby limiting the necessity for frequent changes through annual finance acts.”
On achieving the 18 per cent tax-to-GDP ratio mandated by the committee to improve the nation’s income generation within three years,  Oyedele said, “The average tax-to-GDP ratio for Africa excluding Nigeria is about 18%. This is the basis for the target of 18% and the estimated tax gap of N20 trillion.”
He added, “There is a huge opportunity to generate revenue by leveraging technology and tax intelligence to close the tax gap. In addition, we will rationalize incentives, reduce the cost of collection, and optimise revenue from government assets and natural resources.  This way we can generate more revenue without introducing new taxes.”
According to him, the committee’s mandate is not limited to only the federal government but cut across all levels of government.
“The committee will work with all levels of government as critical stakeholders to ensure effective collaboration in the design and implementation of necessary fiscal policy changes and localisation of reforms at the subnational level as may be applicable,” Oyedele disclosed.


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