Chairman of the Committee, Mr. Taiwo Oyedele and President Bola Tinubu
The Presidential Committee on Tax Reforms and Fiscal Policy has made an official announcement, indicating its recommendation to simplify the country’s tax system, aiming to reduce tax rates to single-digit figures.
Chairman of the committee, Mr. Taiwo Oyedele briefed the media after delivering the ‘Quick Win Report’ to President Bola Ahmed Tinubu on Tuesday, October 24.
He emphasized the importance of streamlining Nigeria’s extensive list of over 260 official and unofficial taxes as a means to alleviate the burdens placed on businesses and individual taxpayers.
Oyedele pointed out that among the 260 taxes imposed on businesses and individuals, just 60 of them hold official status.
Accompanied by Zacch Adedeji, the Acting Chairman of the Federal Inland Revenue Service (FIRS), the committee’s chairman emphasized their commitment to decreasing the count of official taxes from 60 to a single-digit figure.
The key recommendations include, but not limited to:
1. Measures to address duplication of functions in public service, ensure prudent public financial management and optimize value from government assets and natural resources
2. Policy signalling and collaboration by MDAs, economic management, and policy execution team
3. Use of technology “Data4Tax” to expand the tax net
4. Increase personal income tax exempt threshold and personal relief allowance
5. Tax break for private sector in respect of wage increases to low-income earners, transport subsidy and net increase in employment
6. Permit the payment of taxes on foreign currency denominated transactions in Naira for Nigerian businesses.
7. Remove impediments to global employment opportunities for Nigerians based in Nigeria
8. Suspension of VAT on diesel and tax waivers on CNG, CNG conversion, and renewable energy items
9. Comprehensive review of tariffs on the 43 items unbanned from accessing forex in the official market and fiscal policy review of other items prohibited for imports
10. Reforms of Withholding Tax Regulations to ensure simplicity and ease the pressure on working capital of businesses.