• Saturday, June 15, 2024
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Tinubu targets 18% tax to GDP ratio with Oyedele’s tax reforms committee

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President Bola Tinubu on Tuesday, inaugurated the Presidential fiscal policy and tax reforms committee, headed by Taiwo Oyedele, with a mandate to achieve 18% tax-to-GDP ratio in the next 12 months.

The President had last month, appointed Taiwo Oyedele, a tax expert, Fiscal Policy Partner and Africa Tax Leader at PwC, Chairman of the new tax reform Committee.

While inaugurating the committee, Tinubu who lamented that Nigeria’s tax to the Gross Domestic Product ( GDP) ratio is the lowest and below Africa’s average, assured that his administration will “ tax the fruits and not the seed”.

He listed the broad assignments of the Committee to include; harmonisation of taxes, improving revenue profile, transforming the tax system and achieving a minimum of 18% of the tax to GDP ratio.

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The President noted that his administration has taken steps to revamp the economy with the reversal of the fuel subsidy and the dual foreign exchange policy.

He also assured of his determination to improve the quality of the lives of the people, stating however that “ a government can only function well if it can discharge its responsibilities, adding that without adequate revenue, the government cannot meet its responsibilities.

“Nigeria ranks very low on ease of doing business and tax to GDP is the lowest in the world ABD falls below Africa’s average. Multiple exchange rate systems won’t happen under my watch.

The committee is to address gross fiscal challenges, Fiscal governance, tax reforms and growth facilitation
They shall address the issues of multiple revenue collection, poor accountability in applying government revenue.

Last month, the president named Taiwo Oyedele, a tax expert, Fiscal Policy Partner and Africa Tax Leader at PwC, Chairman of the new tax reform Committee.