Tinubu receives interim report on new tax policy to reduce burden on poor Nigerians
By Sodiq Adelakun
President Bola Ahmed Tinubu has received an interim report on a new tax policy aimed at reducing the tax burden on poor Nigerians.
The current tax to Gross Domestic Product (GDP) ratio is less than 8 percent, but the new policy aims to increase it to 18 percent. Despite this target, the policy is designed to alleviate the financial strain on the country’s less fortunate citizens.
The Chairman of the Presidential Committee on Tax Reforms, Taiwo Oyedele, provided an overview of the new policy after presenting it to the President.
Oyedele explained that the policy was developed through extensive consultations with stakeholders from across the country.
He also highlighted that the interim report includes strategies for quick wins that will help the government increase revenue generation in the shortest possible time.
The reduction of the tax burden on poor Nigerians is one of the key impacts of the new policy.
The policy document is the result of a collaborative effort between the government and various stakeholders, ensuring that the needs and concerns of the people are taken into account. The interim report provides valuable information on how the government can quickly boost revenue generation.
This will be crucial in supporting the country’s economic growth and development.
Meanwhile, the new tax policy demonstrates the government’s commitment to improving the lives of its citizens.
In the same vein, Oyedele revealed that there are over 200 unofficial taxes currently being collected across the country, adding that less than 10 of those taxes provide the revenue base for the government.
“What is the use collecting about seven different taxes from an ordinary sachet water seller, with over 200 different taxes, while government revenue comes from less than 10 of those items,” he said.
In a momentous gathering, Oyedele took the stage and captivated the audience with his insightful presentation.
Among the distinguished guests was Zacch Adedeji, the Acting Chairman of the Federal Inland Revenue Service, who observed the proceedings with keen interest.
Oyedele emphasized the importance of subjecting their final report to a thorough Constitution review, recognizing the significance of this step in shaping the future.
Following the enlightening presentation, the Senior Special Assistant to the President on Media and Publicity, Ajuri Ngelale, stepped forward to share the President’s directives.
With unwavering determination, the President instructed Hadiza Usman, the Special Adviser to the President on Policy Coordination, to collaborate closely with the Secretary to the Government of the Federation and the Chairman of the Tax Policy Review Committee.
“This is to ensure that there is effective synergy and to ensure that every institution of the federal government is on the same page with respect to how tax policy will be implemented.
“His Excellency Mr. President has also made available an opportunity for the recommendations of the tax policy review committee to be made a top most priority at the next sitting of the federal executive council meeting on Monday, Mr. President will continue to emphasise the importance of ensuring that our tax authorities are not taxing the seed, but are taxing the fruit. And that will continue to be the focus.
“We want to ensure that our citizens are receiving the best of public service provision. And that is only going to be possible when we have expanded the tax net to such an extent that we are collecting tax to GDP, reaching the 18 percent threshold as directed and targeted by His Excellency, Mr. President, without any undue burden being placed on the most vulnerable segments of our population.
“We also want to ensure that, we do so, without, in any way, increasing any substantial form the taxes being levied on large scale industry, medium scale industry and small scale industry in the country,” he said.
