In a reassuring statement, Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has announced that Nigerians will not face the imposition of higher tax rates under the leadership of President Bola Tinubu.
Oyedele, who was appointed to head the committee by the President in August, provided clarity on the government’s fiscal policies and tax reform efforts through his official communication channel on Sunday, addressing Frequently Asked Questions.
Chairman Oyedele emphasized that the committee’s primary objective is to streamline and simplify the existing tax framework by reducing the number of taxes and levies imposed on Nigerians and businesses, ultimately lightening their financial burden. He categorically stated that there are no plans to introduce new taxes.
He said, “We do not intend to introduce new taxes or impose higher tax rates. Rather, our mandate is to reduce the number of taxes and levies while harmonizing revenue collection to reduce the burden on the people and businesses. 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.”
Regarding the ambitious goal of achieving an 18 percent tax-to-GDP ratio within three years, Oyedele explained the rationale behind this target. “The average tax-to-GDP ratio for Africa, excluding Nigeria, is about 18%. This is the basis for the target of 18% and the estimated tax gap of N20 trillion,” he noted.
He further elaborated on the strategies to attain this target, saying, “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.”
Crucially, Chairman Oyedele highlighted that the committee’s mandate extends beyond the federal government and encompasses all levels of government in Nigeria. “The committee will work with all levels of government as critical stakeholders to ensure effective collaboration in the design and implementation of necessary fiscal policy changes and localization of reforms at the subnational level as may be applicable,” he disclosed.
As Nigeria charts a course toward economic growth and sustainability, the government’s commitment to a fair and balanced tax system that alleviates the financial burden on its citizens is evident through the proactive initiatives led by the Presidential Committee on Fiscal Policy and Tax Reforms.
