• Monday, February 26, 2024
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Tinubu will avoid raising taxes, focus on reforms- Oyedele

Nigeria’s emergency economic intervention bill to amend dollar-based tax laws

President Bola Tinubu has said he will not raise taxes on Nigerians, but instead focus on reforms to improve the tax system’s efficiency.

Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, said on the social media platform, X, that the government would work to reduce the number of taxes and levies while harmonizing revenue collection.

 

“We do not intend to introduce new taxes or impose higher tax rates,” Oyedele said. “Rather, our mandate is to reduce the number of taxes and levies while harmonizing revenue collection to reduce the burden on the people and businesses.”

Oyedele said the government would also review and re-enact the major tax laws holistically, in order to limit the need for frequent changes.

Read also Pipeline vandalism, multiple taxes hurting businesses, NLNG tells Tinubu

He said the government would also leverage technology and tax intelligence to close the tax gap, which is estimated to be around N20 trillion ($50 billion).

“There is a huge opportunity to generate revenue by leveraging technology and tax intelligence to close the tax gap,” Oyedele said. “In addition, we will rationalize incentives, reduce the cost of collection, and optimize revenue from government assets and natural resources.”

Oyedele said the government’s tax reforms would be implemented to minimise disruption to businesses and individuals.

“The committee will work with all levels of government as critical stakeholders to ensure effective collaboration in the design and implementation of necessary fiscal policy changes and localization of reforms at the subnational level as applicable,” Oyedele said.

Read also FG, states begin harmonisation of taxes

The government’s commitment to avoiding tax increases will likely be welcomed by businesses and individuals who have been hit hard by the rising cost of living.

However, some analysts have warned that the government’s tax reforms may not be enough to generate the revenue needed to fund its ambitious infrastructure plans.

Only time will tell whether Tinubu’s tax reforms will be successful. However, the government’s commitment to avoiding tax increases is a positive sign for businesses and individuals.