The Presidential Fiscal Policy and Tax Reforms Committee, says engaging reforms and effective implementation of legislation in the tax sector will give Nigeria the needed boost in revenue generation and economic growth.
The Chairman, Taiwo Oyedele,
who disclosed this at a public consultation workshop for journalists and public analysts in Abuja said the reforms are part of the Committee’s far-reaching proposals to enhance government’s revenue profile and sustain economic development in the country.
He said the committee is working to ensure fair taxation, responsible borrowing and sustainable spending, with further recommendations aimed at exempting poor people from taxation in the country and focusing more on efficient tax administration and collection from the rich of society, poverty, health and electricity following the work done over nine months since its inauguration.
He said prioritising revenue in these key sectors would ultimately reduce Nigeria’s poverty rate and position the economy on the path of sustainable growth in the years ahead.
“The basic principle in tax administration is that you cannot be taxing poverty and achieve economic growth. Taxes are to be imposed or used to create prosperity.”
Other proposals by the Committee include replacing the Federal Inland Revenue Service (FIRS) with Nigeria Revenue Service (NRS) since its “revenue collection mandate encompasses revenues at national and sub-national levels and not necessarily the Federal Government’s revenue alone.”
The tax expert also expressed the Committee’s opposition to the current practice where revenues accruals are distributed monthly by the three tiers of government given the attendant negative implications for the inflation rate in the country.
Alternatively, the Committee is proposing daily distribution of accruing revenues to moderate the rising price level in the economy.
Oyedele said the Committee’s resolve at ensuring inputs of all critical stakeholders are sourced to aid the ongoing fiscal reformative drive nationwide, is evident in its robust engagement with every segment of society including the Organised Private Sector (OPS), Farmers’ associations, Trader groups, Manufacturers, Players in the Maritime industry, the Central Bank of Nigeria (CBN), the fiscal authorities at both national and sub-national levels as well as the National Assembly (NASS), among others.
He also tasked the media to properly and accurately enlighten the Nigerian public, particularly the tax payers, on the Committee’s mandate and current reform measures being proposed to keep them well-informed and elicit their support in creating a more conducive environment for businesses to thrive while enhancing the citizen’s overall welfare.
The Chairman said despite being an advisory body, the Committee has extracted government’s commitment on focused consideration and implementation of its proposals, emphasizing the need for governments to embrace productive fiscal policy option to address existing as well as emerging challenges of effective tax administration in the country,
On challenges faced by businesses due to the Foreign Exchange (FX) market volatility which causes frequent changes in the import duty rate, Oyedele said market stability would allow adequate planning by businesses, just as he lamented that Nigeria’s revenue losses associated with tax administration inefficiencies and high rates of taxes remain among the highest globally.
