The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, assured Nigerians that there will be no increase in tax rates during President Bola Tinubu’s administration. Oyedele, who heads the committee since his inauguration in August, shared this information on his social media account while addressing Frequently Asked Questions about the committee’s goals and progress.
He emphasized that their primary aim is to streamline the existing tax system by reducing the number of taxes and levies, making it less burdensome for individuals and businesses. Instead of introducing new taxes or raising tax rates, they plan to comprehensively review and update major tax laws, reducing the need for frequent changes through annual finance acts.
Regarding the committee’s target of achieving an 18% tax-to-GDP ratio within three years, Oyedele explained that this goal is based on the African average, excluding Nigeria, and aims to close the estimated tax gap of N20 trillion. He highlighted the potential for revenue generation through technological advancements, improved tax collection, rationalization of incentives, reduced collection costs, and optimizing revenue from government assets and natural resources, all without introducing new taxes.
Oyedele also emphasized that the committee’s mandate extends beyond the federal government and includes collaboration with all levels of government to implement necessary fiscal policy changes and reforms at the subnational level.