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

NGX Chair: Dangote Refinery IPO Will Deepen Nigeria’s Capital Market

Being excerpts of a TV interview granted by Dr....

INEC Chairman, Joash Amupitan, to Keynote GOCOP 2026 Conference in Lagos

Chairman of the Independent National Electoral Commission (INEC), Professor...

NCRIB President Endorses Insurance Meets Tech 5.0, Rallies Brokers to Participate

L-R: Executive Secretary, Nigerian Council of Registered Insurance Brokers...

Fidelity Bank: Why the Right Community Could Be a Woman’s Greatest Advantage

For generations, women have been encouraged to work harder,...

Agusto & Co. Upgrades Mutual Benefits to ‘A-’ on Strong Financial Performance

Agusto & Co. has upgraded the long-term credit rating...

Topics

Maersk Sets Net Zero CO2 Emission Target by 2050

A.P. Moller -Maersk aims at having carbon neutral vessels...

VerveLife 5.0 Gears Up for Nairobi, Lagos Events

Following a successful series of Verve Life 5.0 satellite...

‘BREXIT Will Worsen Nigeria’s Struggling Economy’

Following the UK’s surprise vote to leave the EU,...

Stanbic IBTC Offers Advice On Looming Post-COVID 19 Recession

  As the impact of the coronavirus (COVID-19) continues to...

Why Investors Should Not Ignore Opportunities in Fragile States

Africa is experiencing fewer wars than it did two decades ago but conflict, insecurity and the fragility of states is still a major concern for business. Politically motivated instability can be seen in countries like Burundi, South Sudan, Mali, eastern DRC, Libya and Somalia, while Nigeria and Kenya are dealing with terrorist activities. But American entrepreneur Jake Cusack believes there are “genuine economic opportunities” in these fragile markets. He says companies need to be strategic about what parts of a country they invest in, and whom to partner with, as opposed to writing off an entire country.

Insurance, Pension Marketing & Distribution Summit Africa 2016

The Insurance and Pension Marketing & Distribution Summit Africa,...

Business Journal Weekly Online Newspaper to go LIVE August 7

The Business Journal weekly online newspaper will commence publication...

Niger Insurance Reports N1.15bn Claims Payment

Mr. Edwin Igbiti, Managing Director/CEO, Niger Insurance Plc says...