Tinubu Sets Up Tax Reforms Committee

President Bola Tinubu on Friday approved the establishment of a Presidential Committee on Fiscal Policy and Tax Reforms.

In a statement by the special adviser to the president on special duties, communications and strategy, Dele Alake, said Taiwo Oyedele, fiscal policy partner and Africa tax leader at PriceWaterhouseCoopers (PwC), was named as the chairman of the committee.

The committee will comprise experts from both the private and public sectors and they will be responsible for various aspects of tax law reform, fiscal policy design and coordination, harmonisation of taxes, and revenue administration.

‘President Tinubu sets up committee on tax reforms,’ the committee’s primary objective is to enhance revenue collection efficiency and ensure transparent reporting.

It will also promote the effective utilisation of tax and other revenues to boost citizens’ tax morale, foster a healthy tax culture, and drive voluntary compliance.

”Nigeria ranks very low on the global ease of paying taxes while the country’s Tax to GDP ratio is one of the lowest in the world and well below the African average.

”This has led to an overreliance on borrowing to finance public spending which in turn limits the fiscal space as debt service costs consume a greater portion of government revenue, annually resulting in a vicious cycle of inadequate funding for socio-economic development.

”While some incremental progress has been recorded over the years, the outcomes have not been transformative enough to change the narrative.

”Our aim is to transform the tax system to support sustainable development and achieve a minimum of 18% Tax to GDP ratio within the next 3 years without stifling investment or economic growth.

”It should be noted that this committee will not only advise the government on necessary reforms, but will also drive the implementation of such recommendations in support of the comprehensive fiscal policy and tax reform agenda of the current administration.”