The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has outlined some significant changes that Nigerians can expect in the nation’s fiscal landscape.
In a statement on Tuesday, Oyedele emphasised the importance of data-driven decisions, pointing out that the current fiscal system was plagued with challenges such as outdated laws, multiple taxes, poor tax administration, and a lack of public trust.
He also highlighted the burden of taxation on compliant citizens and businesses while evaders often escaped consequences.
The Chairman said his team would carry out comprehensive reforms that would drive equitable growth, enhance revenue generation, and foster a conducive business environment.
Below are 10 key changes contained in Oyedele’s statement obtained by this newspaper, which Nigerians can anticipate:
1. Overhaul of Outdated Laws: To address complexity and multiplicity of taxes, the committee will embark on comprehensive updates of existing laws. The goal is to harmonize tax structures, alleviate the burden on vulnerable citizens, and cater to the concerns of investors across the spectrum.
2. Equity in Taxation: Tax policies will be designed to reduce the burden on the poor and vulnerable, ensuring a more equitable distribution of taxes.
3. Simplified Tax Disputes: A more streamlined process for resolving tax disputes will be established, with accessible mechanisms for small businesses and vulnerable individuals.
4. Boosting Revenue Generation: Strategies will be developed to enhance revenue generation without resorting to new taxes, responding to economic challenges such as rising prices.
5. Digital Economy and Job Growth: Laws will be amended to encourage remote work opportunities and foster job growth in the digital economy, benefiting the youth.
6. Global Business Attraction: Policies will be created to attract global businesses, positioning Nigeria as a hub for research, innovation, and financial services on the continent.
7. Energy Transition Planning: Fiscal policies will address energy transition concerns and sustainable development, ensuring responsible energy practices.
8. Modernization of Tax Administration: A coordinated strategy will be implemented to enhance transparency in revenue reporting, promoting accountability and trust. The committee acknowledges the need to modernize tax administration, addressing issues such as unregulated collections by untrained officers, particularly at the Local Government level.
9. Quality Spending and Long-Term Vision: The focus will be on prudent spending to ensure efficient use of generated revenue for national development.
10. Responsibility towards Sustainable Development: Policies will be future-oriented, addressing multidimensional poverty and aligning with Sustainable Development Goals.
Oyedele believes that if these reforms are carried out, Nigeria has the potential to emerge as a global leader in fiscal policy innovation and development.