Taiwo Oyedele, Chairman, Presidential Fiscal Policy and Tax Reforms Committee says proposed tax reforms bills are designed to address immediate fiscal challenges, lay sustainable framework for economic growth and development of Nigeria.
By Haruna Salami
Taiwo Oyedele, Chairman, Presidential Fiscal Policy and Tax Reforms Committee says proposed tax reforms bills are designed to address immediate fiscal challenges, lay sustainable framework for economic growth and development of Nigeria.
Mr. Oyedele stated while presenting his committee’s findings on proposed tax reforms bills to Senate in plenary on Wednesday.
It will be recalled that the committee was constituted by the Federal Government to evolve measures to address Nigeria’s economic challenges, including high poverty rates, low government revenue and rising public debt.
He said current economic situation in Nigeria necessitates immediate and comprehensive tax reforms to address poverty, improve revenue collection, and create a favorable business environment.
According to him “the proposed reforms aims to alleviate the tax burden on the poorest citizens, while ensuring that wealthier individuals and corporations contribute fairly to government revenue’.
He said the reform would simplify the tax structure and reduce the number of taxes, make compliance easier for businesses and individuals, while potentially increasing overall tax revenue.
“Building trust between the government and citizens is crucial for improving tax compliance”, adding “this resulted in the proposal for establishment of a Tax Ombudsman”, he said.
Mr. Oyedele said the current VAT sharing formula is deemed unfair, favouring state governments with major corporate headquarters, adding that the proposed tax reform engenders a more equitable distribution based on consumption within states.
He said the four bills aimed at overhauling the tax system include “the Nigerian Tax Bill,Tax Administration Bill, Nigerian Revenue Service Establishment Bill and the Joint Revenue Board Establishment Bill’.
He said key proposals of the tax reform bills includes elimination of minimum tax for loss-making companies, introduction of a 15 per cent effective tax rate on profits for large companies.
Others are removal of VAT on essential goods and services, increase tax thresholds for personal income tax to exempt low-income earners and simplification of the tax system by reducing the number of taxes and levies among others.
He urged the Senate to consider the proposed bills favorably to create a more conducive environment for investment and business operations in Nigeria.
Chairman of Federal Inland Revenue Service (FIRS), Mr. Zacch Adedeji also allayed fears of Nigerians on possible introduction of new taxes through the proposed tax reform laws.
Adedeji thanked the leadership of the National Assembly for giving the committee opportunity to explain to Nigerians on the importance of the bills to Nigerian economic growth.
“First of all, we thank the Senate leadership for allowing us, you known is unusual to be here at the time, but because of critical and important nature of this Bills and the transformative capacity that they all possess, that is why we are here today.
“This committee was set up more than a year ago, move round the country, collect consultations with the governors, with commissioners, with everybody, that consultations continue until the Bills is passed, even after that, education will continue”, he said.
“Honesty, the major impact is to just stimulate economy. Don’t forget, Mr. President had said that he would not tax poverty but prosperity, fruits and not seeds, returns and not investments.
“This is the beginning of Mr. President’s commitment on fulfillment that will have solid foundation, that will actually lead to the prosperity of this country”, Adedeji said.
