In a recent interview on Channels Television, Taiwo Oyedele, the Chairman of the committee, highlighted the intention behind the initiative, asserting that it would result in the suspension of what he termed as 'nuisance taxes' by various states and local government authorities nationwide.
President Bola Tinubu inaugurated the tax panel a few months after assuming office, tasking it with spearheading tax reforms to generate essential tax revenue for fostering economic growth and development.
Oyedele emphasized during the interview that these low-revenue taxes, referred to as "nuisance taxes," were not contributing significantly to the state's financial resources. He defined nuisance tax as a levy imposed as a percentage of the selling price of goods or services.
He said, “We are asking states to suspend nuisance taxes that just create problems, with very little revenue to show for it. We are already meeting with their governors, and in some cases, we have set up small committees to discuss with their teams. So once the thing is signed, there won’t be any excuse, it is to be implemented the next day”
He disclosed that despite the widespread collection of certain taxes, the returns were not reaching government coffers.
Expressing concern, the chair of the tax panel also pointed out that local governments reported less than N50bn in revenue collection for 2022, as per data from the National Bureau of Statistics.
In an effort to tackle these challenges, Oyedele provided updates on the committee's progress, stating that the Emergency Economic Intervention Bill, a crucial element of the tax reform strategy, is anticipated to be submitted to the Federal Executive Council for approval.
He clarified that after receiving approval from the FEC, the bill would then proceed to the National Assembly.
Oyedele affirmed that the tax reform bill is expected to pass through the National Assembly and receive presidential assent by the end of the first quarter.
Businesses face significant challenges due to multiple taxations, with various companies paying different taxes and levies imposed by different levels of government.
The Presidential Fiscal Policy and Tax Reforms Committee, inaugurated on August 8, 2023, aims to address these issues.
