Connect with us


FG to reduce number of taxes from 62 to less than 10



Tax reforms

The Nigerian federal government, via the Presidential Committee on Fiscal Policy and Tax Reforms, has revealed its intentions to reduce the number of taxes from about 62 to less than 10 in the country.

Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, made these remarks in Abuja on Tuesday at the 53rd annual conference of the Institute of Chartered Accountants of Nigeria.

Oyedele reported that a staggering 62 taxes are officially gathered across various government tiers in the nation. He stated this imposed a heavy burden on Nigerian business operators.

He also decried the several informal taxes being collected across the country,

Furthermore, Oyedele highlighted a range of pressing issues that Nigeria must confront, such as poverty, meagre revenue, surging debt, diminishing investments, and the increasing trend of youth migration out of the country.

He clarified that the multidimensional poverty index, exposing the fact that more than 133 million Nigerians experienced multi-dimensional poverty, was computed using criteria such as healthcare access, education, security, and other factors.

For Oyedele, to address poverty in the country, there was a need for the government to measure public expenditure to GDP.

Responding to Oyedele, Matthew Gbonjubola, the head of FIRS’ Special Tax Operations Group, highlighted that tax revenues have consistently constituted around 90% of the government’s total income.

He further stated that the government has recently reviewed the VAT module to create an enabling environment for businesses and individuals in the country.

He also stated that the Agency has made public its current data-sharing efforts with several organizations, including the Central Bank of Nigeria and the Financial Intelligence Unit.

It has also implemented practices to facilitate the tracking and reporting of incomes earned by Nigerians in the diaspora.