Amid Economic Hardship, Taiwo Oyedele Speaks On Tinubu Government Imposing Higher Tax Rates On Nigerians

Amid Economic Hardship, Taiwo Oyedele Speaks On Tinubu Government Imposing Higher Tax Rates On Nigerians

Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has assured that the administration of President Bola Tinubu will not impose higher tax rates on Nigerians.

In a statement via his official X-app handle, he addressed frequently asked questions about the committee’s objectives and progress.

Oyedele emphasized that their main goal is to reduce the number of taxes and levies imposed on Nigerians. He clarified that there are no plans to introduce new taxes or raise existing rates. Instead, the committee aims to streamline revenue collection to alleviate the tax burden on individuals and businesses.

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He explained, “The objective is to avoid taxing investment, capital, production, or poverty. We plan to review and re-enact the major tax laws in a holistic manner, thereby limiting the necessity for frequent changes through annual finance acts.”

President Tinubu had tasked the committee, led by Taiwo Oyedele, with enhancing Nigeria’s revenue generation and business environment to achieve an 18% Tax-to-GDP ratio within three years. Responding to questions about how they plan to meet this target without increasing taxes, Oyedele pointed out that the average tax-to-GDP ratio for Africa, excluding Nigeria, is about 18%. This serves as the basis for their target and the estimated tax gap of N20 trillion.

He outlined their approach, stating, “There is a huge opportunity to generate revenue by leveraging technology and tax intelligence to close the tax gap. In addition, we will rationalize incentives, reduce the cost of collection, and optimize revenue from government assets and natural resources. This way we can generate more revenue without introducing new taxes.”

President Bola Tinubu inaugurated the Presidential Committee on Fiscal Policy and Tax Reforms on August 8, 2023. The Committee’s one-year mandate is divided into three main areas: fiscal governance, tax reforms, and growth facilitation.