The Push for Tax Reform in Nigeria
The Presidential Committee on Fiscal Policy and Tax Reforms is advocating for a radical overhaul of Nigeria’s tax administration system. The committee, chaired by Taiwo Oyedele, aims to streamline the tax collection process by reducing the number of taxes to a single digit.
Currently, some states collect up to 197 taxes, leading to inefficiencies and lack of transparency. Oyedele’s committee proposes harmonization and the removal of politically exposed non-state actors from the tax system to improve accountability.
One of the key recommendations is to centralize tax collection under a single agency, potentially the Federal Inland Revenue Service, to increase efficiency and transparency. This proposal has the potential to spark conflicts between federal and state governments over tax administration responsibilities.
While the reforms aim to enhance revenue collection and create a more business-friendly environment, the process may face resistance from state governments. However, experts like Godwin Owoh believe that harmonization is essential for the country’s economic growth.
The committee is pushing for legislative amendments to enact these reforms, with executive orders as interim measures. The ultimate goal is to transition Nigeria into a fair, just, and efficient tax system that promotes investment and growth.