President Bola Ahmed Tinubu on Tuesday received an interim report on the new tax policy, expected to reduce tax burden on poor Nigerians, despite revenue target of 18% tax to Gross Domestic Product (GDP) ratio, as against current less than 8% tax to GDP.
Providing an overview of the new policy after presentations to the President, Taiwo Oyedele, the chairman of the Presidential Committee on Tax reforms, hinted that one of basic impact of the new policy, is reduction of tax burden on poor Nigerians.
Oyedele who revealed that the policy document was a direct result of extensive interactions with various stakeholders across the country, added however, that the interim report has provided information on quick wins that will help the government boost revenue generation within the shortest possible time.
He revealed that there are over 200 unofficial taxes currently being collected across the country, adding that less than 10 of those taxes provide the revenue base for the government.
” What is the use collecting about 7 different taxes from an ordinary sachet water seller, with over 200 different taxes, while government revenue comes from less than 10 of those items,” he said.
Oyedele who made the presentation in the presence of Zacch Adedeji, Acting Chairman of the Federal Inland Revenue Service, noted that their will be need to subject their final report to Constitution review.
Read also: Zach Adedeji to unveil new tax policies
Ajuri Ngelale, Senior Special Assistant to the President on Media and Publicity, speaking after the presentation, said the President has directed Hadiza Usman, the Special Adviser to the President on Policy Coordination, to liaise with the Secretary to the Government of the Federation, and the Chairman of the Tax Policy Review Committee to ensure that the recommendations of the committee are swiftly and immediately implemented across all ministries, departments, and agencies of the federal government.
” This is to ensure that there is effective synergy and to ensure that every institution of the federal government is on the same page with respect to how tax policy will be implemented.
” His Excellency Mr. President has also made available an opportunity for the recommendations of the tax policy review committee to be made a top most priority at the next sitting of the federal executive council meeting on Monday, Mr. President will continue to emphasise the importance of ensuring that our tax authorities are not taxing the seed, but are taxing the fruit. And that will continue to be the focus”
” We want to ensure that our citizens are receiving the best of public service provision. And that is only going to be possible when we have expanded the tax net to such an extent that we are collecting tax to GDP, reaching the 18 per cent threshold as directed and targeted by His Excellency, Mr. President, without any undue burden being placed on the most vulnerable segments of our population”
” We also want to ensure that, we do so, without, in any way, increasing any substantial form the taxes being levied on large scale industry, medium scale industry and small scale industry in the country” he said.
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