Nigeria’s Ambitious Tax Reforms: Reducing Over 60 Taxes to Single Digits
Tax reform in Nigeria is on the horizon, with the Presidential Committee on Tax Reforms and Fiscal Policy taking centre stage.
The committee aims to simplify the complex web of over 60 officially collectable taxes and levies in the country.
The plan is to consolidate these into a much more manageable single-digit number, which is less than 10.
Speaking at the State House, Taiwo Oyedele, Chairman of the Committee, emphasised that the key to reforming the tax system would involve rewriting the nation’s tax laws rather than relying on the courts.
Oyedele noted the excessive burden on the populace due to an unofficial count of over 200 different taxes in Nigeria. Astonishingly, nearly 96% of the total revenue collected at various government levels is derived from fewer than 10 taxes.
Nigeria is at a pivotal moment in revising its taxation laws, with the committee engaging with the National Assembly to address necessary reforms.
The public consultation and stakeholder engagement process is underway, focusing on issues such as Value Added Tax (VAT), aiming to create tax solutions that will benefit all Nigerians.
In this endeavour, the hope is that a simplified, transparent tax system will emerge, enhancing revenue collection and reducing opportunities for tax evasion and inefficiency.
In summary, Nigeria is on the brink of substantial tax reform, aiming to streamline and simplify its intricate tax system for the benefit of its citizens and the country’s economic growth.
By reducing the complexity of taxes and engaging stakeholders, Nigeria can create a fairer and more efficient tax system, ensuring its sustainable development.
Source: TheGuardian
