The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has stated that there will be no new taxes or higher tax rates imposed on Nigerians under President Bola Tinubu’s administration. The committee’s objective is to reduce the number of taxes and levies while harmonizing revenue collection to ease the burden on individuals and businesses.
Oyedele emphasized that the goal is to avoid taxing investment, capital, production, or poverty. Instead, the committee plans to review and re-enact major tax laws comprehensively, minimizing the need for frequent changes through annual finance acts.
Regarding the target of achieving an 18% tax-to-GDP ratio within three years, Oyedele explained that this target is based on the average tax-to-GDP ratio for Africa, excluding Nigeria, which is about 18%. To meet this target and close the estimated tax gap of N20 trillion, the committee plans to leverage technology, tax intelligence, rationalize incentives, reduce collection costs, and optimize revenue from government assets and natural resources.
The committee’s mandate extends beyond the federal government and encompasses collaboration with all levels of government to implement necessary fiscal policy changes and reforms at the subnational level. The goal is to achieve effective collaboration in designing and implementing fiscal policy changes and reforms across all levels of government.