Presidential Fiscal Policy Committee Proposes 8 Single Digit Taxes

Mr. Taiwo Oyedele

Chairman

The Presidential Fiscal Policy and Tax Reforms Committee

The Presidential Fiscal Policy and Tax Reforms Committee has proposed eight single digit taxes in Nigeria as against the estimated 200 taxes existing within the three-tiers of government (federal, states and local governments).

Mr. Taiwo Oyedele, the Chairman of the Committee said at a workshop for journalists in Lagos that the proposal on the eight taxes (Income Tax, Value Added Tax (VAT), Property Tax, Customs Duties, Excise Tax, Stamp Duties, Special Levy and Harmonised Levy) will form part of the draft national fiscal policy for the country.

Oyedele added that the committee has equally recommended suspension of Value Added Tax (VAT) on diesel to reduce financial burden on the productive sector, tax waivers on CNG vehicles and promotion of export of goods, services and intellectual property amongst others.

“There are over 200 taxes across the three tiers of government in Nigeria. We strongly propose single-digit taxation because the poorest people and small businesses carry the burden of taxation in Nigeria.”

He suggested that 95 percent of operators in the informal sector should also be exempted from any form of taxation given that the informal sector constitutes the bulk of socio-economic activities in any economy and secondly, to empower them to grow sustainably.

On the outcome the committee expects at the end of its exercise in terms of tax reform, Oyedele listed five expectations:

  • Collect Better
  • Budget Better
  • Spend Better
  • Manage Better
  • Report Better

He said the issue of taxation in the country is a difficult terrain because only 31 percent of businesses consider tax evasion as wrong while only 17 percent of individuals believe they should pay tax and does not see anything wrong on the issue of tax evasion.

And while businesses complain of multiplicity of taxes and high frequency of tax audit, individuals blame lack of trust in government and tax officials, as well as complex tax process as reasons for their apathy towards payment of tax.

The committee chairman listed the three pillars of its mandate as fiscal governance (modern, simple and adaptive), revenue transformation (growth enabling and competitive) and economic growth and competitiveness (no taxing of investment, capital, production, poverty or seed).

Oyedele listed the current socio-economic realities in the country as slow economic growth, high inflation, widespread poverty, declining investment, low revenue, high public debt and rapid increase in the rate of emigration.

He however, stated that the positive indicators include balance of trade/current account surplus, rising crude oil production and pricing, commencement of local crude oil refining, capital market performance, declining budget deficit by the federal government and States and positive outlook reports by rating agencies.

Hot this week

AFRACA-NIRSAL Masterclass Builds Financial Institutions’ Capacity for Climate, AI-Driven Agricultural Finance

The African Rural and Agricultural Credit Association (AFRACA), in...

Shell Reinforces Safety Commitment at CEO Contractors Forum

Shell leaders and Contractor CEOs at the Annual Shell...

Guinea Insurance Receives New Licence from NAICOM Post-Recapitalisation

L-R: Ademola Abidogun, Managing Director/CEO, Guinea Insurance Plc and...

AXA Mansard Reports N7.8bn H1 Profit, Capital Base Meets Recapitalisation Threshold

AXA Mansard Insurance Plc has sustained its growth momentum...

AXA Mansard Health Int’l Health Plan Covers Cancer, Other Chronic Health Conditions

 Mr. Tope Adeniyi CEO AXA Mansard Health AXA Mansard Health’s International Healthcare...

Topics

Independents to Account for 25% Oil Production by 2020

Independents are projected to account for about 500kbpd by the year 2020, representing 25% of crude oil production in Nigeria, from the current level of 10%. The development is seen as a reflection of the changing landscape of the oil and gas industry in Nigeria. Key Recommendations: • Integration of the upstream to other parts of the value chain may eventually be driven by the independents. • Challenges such as security, especially for independents operating in shallow waters. Local companies reiterated that security and community challenges have greatly altered their cost of production which cannot be fully ascertained. When coupled with Government take and interest from loans the cost per barrel increases. • Government is to ensure that an enabling environment is created - independents need to be able to deliver on capacity growth and funding.

Stanbic IBTC, Standard Bank Listed Among Top African Corporate Brands on LinkedIn

  Stanbic IBTC Holdings PLC and its parent company, Standard...

Leadway Health Emerges HMO of the Year at NHEA 2023

From left: Head of Operations, Dr. Gideon Anumba; Dr....

British Court: Insurers Wrong to Deny COVID-19 Claims

London judges have ruled that some of the world’s...

Ecobank Digital Leads in Seamless Banking Experience

                                                        Ecobank Nigeria Plc has effectively activated a broad-range...

GDP Contracts 1.3% in Q4: 2016; February PMI Data Shows Further Weakness

The National Bureau of Statistics (NBS) released Q4:2016 GDP...

BlackBerry: Two New Phones, Name Change Define Future Ambition

­BlackBerry Z10   Research in Motion has held its much vaunted...

FG Denies Raising Import Duties on Food Items

The Federal Government has vehemently denied reports that it...