EXCITING NEWS: TNG WhatsApp Channel is LIVE…
Subscribe for FREE to get LIVE NEWS UPDATE. Click here to subscribe!
The Presidential Committee on Tax Reforms and Fiscal Policy says it is determined to simplify the excessive number of collectable taxes and levies, currently exceeding 60, aiming to reduce them to fewer than 10 at all levels of government.
Chairman of the Committee, Taiwo Oyedele, made this known when he addressed State House Correspondents on Tuesday.
He stated, “Our aim is to consolidate these taxes at all levels of government, reducing the total number to less than 10.”
Oyedele also noted the burden posed by the existing plethora of taxes and levies, stressing that around 96 per cent of the total revenue collected by the federal, state, and local governments is derived from a small set of fewer than 10 taxes.
The Chairman expressed the critical nature of revising Nigeria’s taxation laws and regulations, noting the committee’s engagement with the Senate and the House of Representatives to address necessary reforms.
In the context of the controversy surrounding the Value Added Tax (VAT) law, Oyedele stressed the need for Nigerians to come together to find solutions rather than relying on the courts.
He announced that the committee has initiated public consultation and stakeholder engagement and has already received input from every state in Nigeria.
Regarding the need for constitutional amendments for most of the reforms, Oyedele pointed a lack of clarity regarding taxing rights between levels of government as a major challenge.
He stated, “We have over 60 taxes and levies, officially collectable by federal government, state government, and local governments. Unofficially, those taxes number over 200, making life difficult for our people.”
The Chairman also discussed the shift in tax structure and revenue generation, highlighting that having a higher number of taxes does not necessarily lead to increased revenue and can create opportunities for financial leakages.
In the second phase of the committee’s report, critical reforms will be revealed, addressing the multiplicity of taxes and rewriting major tax laws.
Oyedele shared that the committee has been actively engaging with various key stakeholders, including policymakers, to put the framework in place for implementing their recommendations.