The Chairman of Nigeria’s Presidential Fiscal Coverage and Tax Reforms Committee, Taiwo Oyedele believes Nigeria can considerably enhance its income with out imposing new taxes.
As a substitute, he advocates for higher tax administration and using know-how to shut the estimated N20 trillion tax hole.
In an interview on Channels Tv’s “Politics Right this moment” on Friday, Oyedele emphasised that the committee’s work focuses on transformative fiscal reforms pushed by proof and huge session.
“We’ve executed a variety of work, fairly in depth and far-reaching,” he remarked. We’ve ve consulted broadly, together with with governors, federal income companies, and first sector stakeholders,” he mentioned.
The Presidential Committee on Fiscal and Tax Reforms, was established to evaluate and reform Nigeria’s fiscal and tax insurance policies, aiming to reinforce effectivity, enhance income, promote financial progress, and cut back poverty.
The committee’s targets embody reviewing tax legal guidelines, figuring out new income sources, growing a nationwide fiscal coverage, harmonizing tax insurance policies, bettering tax administration, enhancing transparency, selling financial diversification, and inspiring personal sector funding.
The committee’s work is predicted to result in a simpler fiscal and tax system, bettering the general well-being of Nigerians.
Relating to the tempo of fiscal reforms in comparison with financial coverage, Oyedele defined, “Fiscal reform can’t be as fast as financial coverage. It requires evidence-driven insurance policies and in depth session to make sure correct analysis and efficient prescriptions.”
He additional disclosed that some suggestions, together with a brand new tax regime providing reduction to small companies and easing capital constraints, have already been carried out.
These measures, signed by the Ministers of Finance and Financial system, Wale Edun are designed to stimulate progress amid present financial challenges.
When requested about producing extra income with out growing taxes, Oyedele expressed optimism.
“We’ve over 60 completely different taxes and levies however haven’t collected sufficient to adequately fund infrastructure like roads,” he famous.
“As a substitute of introducing new taxes, we advocate consolidating and harmonizing present ones,” he added.
Oyedele burdened the significance of leveraging knowledge intelligence and know-how to shut tax gaps and guarantee compliance.
“By figuring out those that must be paying however aren’t, we will doubtlessly double our income inside two to a few years,” he asserted.
He additionally emphasised the necessity for exemptions for micro-businesses and low-income earners to stop burdening society’s most susceptible.
Oyedele affirmed his confidence in Nigeria’s capability to mobilize income sustainably.
“We imagine in our strategy over the medium to long run by streamlining taxes and enhancing compliance via fashionable strategies, Nigeria can unlock its financial potential with out overburdening its residents,” he mentioned.
The committee’s proposals are anticipated to bear additional legislative processes within the coming weeks, aiming to pave the best way for a extra strong fiscal coverage framework in Nigeria.