The Presidential Committee on Fiscal Policy and Tax Reforms has initiated discussions with state governors to suspend low-revenue taxes, referred to as ‘nuisance taxes,’ across the country.
The Chairman of the committee, Taiwo Oyedele, announced the move during an interview, emphasizing that these taxes do not contribute significantly to state revenues and often adversely impact the poor.
The committee, inaugurated by President Bola Tinubu, is tasked with championing tax reforms to boost tax revenue for economic growth and development. Oyedele highlighted the need to address the challenges posed by multiple taxes, particularly those affecting the transport of goods from the North to the South and vice versa.
In addition, the committee expressed concerns over local governments reporting less than N50 billion in revenue collection for 2022, based on National Bureau of Statistics data.
Oyedele shared updates on the committee’s progress, stating that the Emergency Economic Intervention Bill, a crucial element of the tax reform strategy, is set to be submitted to the Federal Executive Council for approval. Once approved, the bill will proceed to the National Assembly, aiming for passage and presidential assent by the end of the first quarter.
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The move towards tax reform aligns with President Tinubu’s call for a speedy review of the global taxation system to address imbalances and revenue losses experienced by developing countries, especially in taxing digital economies. Tinubu, represented by the Minister of Budget and Economic Planning, Abubakar Bagudu, spoke at the third South Summit of the Group of 77 and China in Uganda. He emphasized Nigeria’s commitment to multilateralism and highlighted the country’s role in championing a Framework Convention on Tax at the United Nations.
President Tinubu expressed gratitude to countries supporting the global tax review initiative, stressing the need for a more equitable and inclusive global tax system. Additionally, he advocated for the revival of the Action Committee on Raw Materials of the G-77, emphasizing the importance of comprehensive data on raw material availability for coordinated information dissemination and economic growth.
The efforts by the Presidential Committee on Fiscal Policy and Tax Reforms reflect a comprehensive strategy to enhance tax efficiency, address imbalances, and foster economic development.**
