Tax Reform Bills ‘ll Ensure Sustainable Economic Growth – Oyedele
Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, says that the proposed tax reform bills are designed to address immediate fiscal challenges and lay a sustainable framework for economic growth and development of Nigeria.
Oyedele said this in Abuja while presenting his committee’s findings on the proposed tax reforms bills to the Senate on Wednesday.
The committee was constituted by the Federal Government to evolve measures of addressing the country’s economic challenges, including high poverty rates, low government revenue, and rising public debts.
Oyedele said the current economic situation in Nigeria had necessitated immediate and comprehensive tax reforms to address poverty, improve revenue collection, and create a favorable business environment.
He said that the proposed reforms aimed to alleviate the tax burden on the poorest citizens, while ensuring that wealthier individuals and corporations contribute fairly to government revenue.
Oyedele said that the reforms would simplify the tax structure and reduce the number of taxes, make compliance easier for businesses and individuals, while potentially increasing overall tax revenue.
According to him, building trust between government and citizens is crucial to improving tax compliance, adding that this has resulted in the proposal for the establishment of a Tax Ombudsman.
He described the current VAT sharing formula as unfair, saying it only favoured state governments.
Oyedele further stated that the proposed tax reform would engender a more equitable distribution, based on consumption within states.
The four bills are: the Nigerian Tax Bill, Tax Administration Bill, Nigerian Revenue Service Establishment Bill and Joint Revenue Board Establishment Bill.
Oyedele said that highlighted the key proposals of the tax reform bills to include: elimination of minimum tax for loss-making companies and introduction of a 15 per cent effective tax rate on profits for large companies.
Others are: removal of VAT on essential goods and services., increase in tax thresholds for personal income tax to exempt low income earners and simplification of the tax system by reducing the number of taxes and levies.
He urged the senate to consider the proposed bills favorably to create a more conducive environment for investments and business operations in Nigeria.
Chairman of Federal Inland Revenue Service ( FIRS ), Dr Zacch Adedeji, also allayed the fears of Nigerians on possible introduction of new taxes through the proposed tax reform laws.
Adedeji thanked the leadership of the National Assembly for giving the committee the opportunity to explain to Nigerians the importance of the bills to Nigerian economic growth.
“First of all, we thank the senate leadership for allowing us. You know it is unusual to be here at this time, but we are here today because of the critical and important nature of these bills and the transformative capacity that they all possess.
“This committee was set up more than a year ago; it has moved round the country, made consultations with the governors, commissioners, with everybody; the consultations will still continue until the bills are passed, and even after that, education will continue,” he said.
He said that the essence of the bills was to stimulate the economy, adding: “don’t forget that Mr President had said that he would not tax poverty but prosperity, fruits and not seeds, returns and not investments.
” This is the beginning of Mr President’s commitment to fulfilling these so that we can have a solid foundation that will lead to the prosperity of this country,” Adedeji said Naira Plummets to N1690/$ after CBN Priced Spot Rate High
