“Aliko Dangote, the President of Dangote Group, has applauded President Bola Tinubu for his decisive actions to enhance tax collection in the nation. Findwhosabi News reveals that Dangote praised Tinubu for launching the Presidential Committee on Fiscal Policy and Tax Reforms, led by renowned tax expert Taiwo Oyedele.
Dangote expressed confidence in the committee’s potential to bolster non-oil revenue for the federal government and stem revenue leakages. Speaking exclusively to THISDAY on Wednesday, he urged the committee to expand the tax base, thereby alleviating the burden on consistent taxpayers.
This commendation coincides with the government’s ongoing deliberations to potentially designate the Federal Inland Revenue Service (FIRS) as the exclusive federal revenue collection agency. This move might curtail the role of other revenue-generating bodies like the Nigeria Customs Service, Nigerian Communications Commission (NCC), Nigerian Ports Authority (NPA), and around 60 more entities.
Africa’s wealthiest individual emphasized that an efficient tax collection system could eliminate the need for government borrowing by plugging fiscal gaps. He praised President Tinubu’s initiative, citing the necessity of using tax funds for vital social services, and expressed his optimism for the committee’s work.
Dangote Group pays more taxes than the entire Nigerian banking sector, underscoring his commitment to responsible corporate citizenship. He urged the committee to streamline the numerous taxes in the nation for greater coherence.
Dangote asserted, “I must thank President Tinubu for creating this committee and also appointing credible people, who are well tested, especially the chairman, who is a tax guru and very objective. Taiwo Oyedele is actually one of the best when it comes to taxation in Nigeria.”
He advocated for replicating successful tax reforms akin to those Tinubu achieved during his tenure as the Governor of Lagos State. Dangote noted that an effective tax system could enable the government to fund critical infrastructure, education, and healthcare without resorting to borrowing.
In his perspective, successful implementation of reforms hinges on automating the tax system and expanding the taxpayer base. He cited India’s approach, which resulted in substantial revenue collection, and urged Nigerians to embrace taxation as a social contract for improved services.
Dangote also addressed concerns regarding the committee’s ambitious target to raise the tax-to-GDP ratio from under 10% to 18%. He pointed out that President Tinubu had exhibited successful leadership in improving revenue collection during his tenure as Lagos State Governor.
While acknowledging potential resistance, Dangote highlighted the necessity of optimizing existing tax policies for fair revenue generation. He affirmed that tax payment is a partnership between the government and businesses, underscoring the importance of investing in national growth.
The move to consolidate federal revenue collection under FIRS aims to enhance efficiency and transparency, redirecting regulatory MDAs’ focus back to their core functions. Chairing the Presidential Committee on Tax Policy and Fiscal Reforms, Oyedele indicated that divesting revenue collection responsibilities from MDAs could streamline operations and combat corruption.
Oyedele also emphasized the importance of the Treasury Single Account (TSA) initiative and proposed the reduction of the plethora of taxes to approximately 10. With a considerable tax gap estimated at N20 trillion, the committee aims to capture uncollected revenue through harmonized reforms.
In conclusion, the federal government’s efforts to optimize tax collection have garnered praise from business leaders like Dangote. These reforms, if effectively implemented, could lead to improved revenue collection, better public services, and overall economic growth.”