The Nigerian President, Bola Tinubu, has expressed his steady commitment to end the malicious cycle of burden of debt servicing and overreliance on public spending, which affects the management of limited government revenues in Nigeria. During the inauguration of the Presidential Committee on Fiscal Policy and Tax Reforms, which was headed by Mr. Taiwo Oyedele in Abuja, the committee was charged by Tinubu to develop business environment and the revenue profile of the country in line with the movement of the federal government to accomplish, within three years, an 18 percent Tax-to-GDP ratio.
Tinubu enjoined the Committee to accomplish its one-year mandate which is further classified into three major areas: growth facilitation, tax reforms, and fiscal governance. Government departments and ministries were also directed to collaborate fully with the committee in accomplishing their mandate. Ajuri Ngelale, the Presidential spokesman, explained in his statement that President Tinubu addressed the Committee members on the significance of their duties, adding that the burden of expectations is carried by his administration from citizens that truly believe in the government to provide better lives.
Adequate social services cannot be provided by the gov’t without revenue.
He stated that the people should not be blamed for their expectations because the expectations have already been campaigned to the people through promises. Ajuri said that he has dedicated himself in bringing quality life to the people by using his tenure judiciously to improve the state of the people. The President affirmed that the country is undergoing difficulties in some sectors such as Tax-to-GDP and the ease of tax payments, while acknowledging Nigeria current international standing in the tax sector which is far behind Continental average of Africa.
While accomplishing a minimum of 18 percent tax-to-GDP ratio in the next three years, the aim of this initiative is to promote sustainable development. He added that adequate social services cannot be provided by the government without revenue to the people it promised to serve. First, the Committee is expected to deploy a schedule of reforms that can be executed within durations of thirty days. Complete execution will be initiated within one year while recommendation on critical reform measures should be completed within six months.
An efficient and fair collection system is essential.
Mr. Zacchaeus Adedeji, the Special Adviser to the President on Revenue, while taking on the President’s sterling track record on revenue transformation, gave a description of the committee members as fulfilled individuals from different sectors. The Special Adviser stated that the President, under revenue transformation, has pedigree which was demonstrated when President Tinubu was the Lagos State governor more than 20 years ago. Mr. Taiwo Oyedele, the chairman of the committee, pledged on behalf of the members to deploy their best for the nation’s interest.
Comprehensive updates on the existing laws are needed to accomplish a complete harmonisation to remove the burden on the vulnerable and poor, while addressing the multiplicity of taxes explaining the concerns of all small and big investors. Ayodele capitalized, while speaking to State House correspondents after the inauguration, that the objective is to make sure that there is an efficient and fair collection system that does not attract the burden on the citizens with more taxes. He added that inefficiencies need to be addressed through the entrusting body: Federal Inland Revenue Service (FIRS), which will be responsible for collecting revenues from various agencies to prioritize their major mandates and promote economic growth.
There is a need to boost government revenues in the country.
Ayodele believes that by 18 percent, the proposal aims to increase the tax-to-GDP ratio, which can be accomplished through data-driven decision-making and careful policy design. He also highlighted the significance of removing essential goods from Value Added Tax (VAT) to protect the vulnerable and poor from excessive financial strain. Shubham Chaudhuri, the country director at the World Bank, explained that there is a need to boost government revenues in the country and control spending to meet the required needs. He endorsed Taiwo’s initiative on optimising collection efficiency and narrowing the tax gap.
Related Link
Statehouse: Website
Nigeria to achieve an 18% Tax-to-GDP ratio – Resultantly, Presidential Committee on Fiscal Policy & Tax Reforms was formed. – Express your point of view.
It’s encouraging to hear that Nigeria is aiming to achieve an 18% Tax-to-GDP ratio. This indicates a commitment to strengthening the country’s fiscal position and enhancing revenue generation through taxation.
The establishment of the Presidential Committee on Fiscal Policy & Tax Reforms is a positive step towards achieving this goal. Such a committee can play a crucial role in formulating effective tax policies, identifying areas of improvement, and implementing necessary reforms to enhance the tax system.
A higher Tax-to-GDP ratio can have several benefits for the country. It can provide a stable and sustainable source of revenue for the government, enabling them to fund essential public services, infrastructure development, and social welfare programs. This can contribute to economic growth, job creation, and improved living standards for the citizens.
To achieve the desired Tax-to-GDP ratio, it’s important for the committee to focus on multiple aspects of tax reforms. This may include broadening the tax base, improving tax compliance, reducing tax evasion, and simplifying the tax system. By making the tax system more transparent, fair, and efficient, it can encourage voluntary compliance and reduce the burden on taxpayers.
However, it’s crucial to strike a balance between increasing tax revenue and ensuring the tax burden remains reasonable and equitable. The committee should consider the potential impact on businesses, especially small and medium enterprises, and take measures to support their growth and competitiveness.
Furthermore, effective communication and public awareness campaigns can play a significant role in encouraging tax compliance and fostering a culture of taxation. Educating the public about the importance of paying taxes and how their contributions can positively impact the country can help build trust and cooperation.
Overall, the commitment to achieving an 18% Tax-to-GDP ratio and the formation of the Presidential Committee on Fiscal Policy & Tax Reforms demonstrate a proactive approach towards strengthening Nigeria’s fiscal position. By implementing well-planned and comprehensive tax reforms, the country can enhance revenue generation, promote economic development, and improve the overall well-being of its citizens.
Through the Presidential Committee on Fiscal Policy & Tax reforms Nigeria to achieve an 18% Tax-to-GDP ratio For the purpose of delivering essential social services, a focus on sustainable development and effective revenue collection is essential
The Presidential Committee on Fiscal Policy & Tax Reforms’ creation is a step in the right direction in attaining this objective. It’s crucial for the committee to concentrate on tax reforms that reduce tax evasion and restructure the tax system in order to reach the targeted tax-to-GDP ratio. By improving the tax system’s openness, equity, and effectiveness
The Fiscal Policy & Tax Reforms’ creation enacted by the president of Committee is a step in the right direction. It’s important the committee concentrates more on tax reforms that reduce tax evasion and restructure the tax system in order to reach the targeted tax-to-GDP ratio. By so doing the tax system’s openness, equity, and effectiveness will in turn bring development and effective revenue collection