Tinubu arranges committee on tax reforms, names Taiwo Oyedele chairman

President Bola Tinubu has authorized the association of a Presidential Committee on Fiscal Policy and Tax Reforms

Fiscal Policy Partner and Africa Tax Leader at PriceWaterhouseCoopers (PwC), Taiwo Oyedele, is the chairman of the committee.

In a statement issued by Special Adviser on Special Duties, Communications, and Strategy, Dele Alake on Friday, the appointment aligns with his promise to remove all boundaries impeding business growth in Nigeria.

The statement said it will encompass experts from both the private and public sectors and have responsibility for the various aspects of tax law reform, fiscal policy design and coordination, harmonization of taxes, and revenue administration.

In the statement, Special Adviser to the President on Revenue, Zacch Adedeji, explained that President Tinubu recognizes the importance of a sound fiscal policy environment and an effective taxation system for the functioning of the parliament and the economy.

“Nigeria ranks very low on the common ease of paying taxes while the country’s Tax to GDP ratio is one of the lowest in the world and well below the African average.

“This has led to an overreliance on borrowing to finance public spending which in turn limits the fiscal space as debt service costs consume a tremendous portion of government revenue, yearly resulting in a vicious cycle of inadequate funding for socio-economic improvement.

“While some incremental progress has been recorded over the years, the effects have not been transformative enough to change the description,” he said.

Adedeji outlined the key challenges in Nigeria’s tax system including multiple taxes and revenue collection agencies, fragmented and complex tax system, low tax morale, high prevalence of tax evasion, high cost of revenue administration, lack of coordination between fiscal and economic policies, and poor accountability in the utilization of tax revenue.

The establishment of the committee, he said reflects President Tinubu’s commitment to addressing these challenges and bringing about transformative reforms in fiscal policy and taxation.

“The committee’s primary objective is to enhance revenue collection efficiency, ensure transparent reporting, and promote the effective utilization of tax and other revenues to boost citizens’ tax morale, foster a healthy tax culture, and drive voluntary compliance.

“These efforts will not only enhance Nigeria’s revenue profile but also create a more facilitative and internationally-competitive business environment.

“We aim to transform the tax system to support sustainable development and achieve a minimum of 18% Tax to GDP ratio within the next 3 years without impeding involvement or economic growth.

“It should be noted that this committee will not only advise the government on necessary reforms but will also drive the implementation of such recommendations in support of the comprehensive fiscal policy and tax reform agenda of the existing government,” the SA on Revenue added.

Edited by Damilola Adeleke

Leave a Reply

Your email address will not be published. Required fields are marked *