President Bola Tinubu has approved the establishment of a Presidential Committee on Fiscal Policy and Tax Reforms.
In a statement on Friday, Dele Alake, Special Adviser to the President on Special Duties, Communications and Strategy, disclosed that the committee will be chaired by Fiscal Policy Partner and Africa Tax Leader at PriceWaterhouseCoopers (PwC), Taiwo Oyedele.
Accordingly, the committee comprises experts from both the private and public sectors and will be responsible for various aspects of tax law reforms, fiscal policy design and coordination, harmonization of taxes, and revenue administration.
The Special Adviser to the President on Revenue, Adelabu Zacch Adedeji, explained that President Tinubu recognizes the importance of a sound fiscal policy environment and an effective taxation system for the government’s and the economy’s functioning.
“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.
Adedeji outlined that the committee would address the key challenges in Nigeria’s tax system, including multiple taxes and revenue collection agencies, fragmented and complex tax system, low tax morale, high prevalence of tax evasion, high cost of revenue administration, lack of coordination between fiscal and economic policies, and poor accountability in the utilization of tax revenue.
“We aim to transform the tax system to support sustainable development and achieve a minimum of 18% Tax to GDP ratio within the next three years without stifling investment or economic growth”, he added.
Recall that on Thursday, Tinubu suspended the implementation of the 2023 Finance Act, telecoms, import and other taxes to create an enabling business environment.