We won’t introduce new taxes – Oyedele

The Chairman of the Presidential Committee on Tax Policy and Fiscal Reforms, Taiwo Oyedele, said the committee has no plan to introduce new or impose higher tax rates on Nigerians.

Oyedele, who stated this yesterday in a post on his X (formerly Twitter) account while answering some frequently asked questions about the Presidential Fiscal Policy and Tax Reforms Committee, said the committee under President Bola Ahmed Tinubu has strategised to only reduce the tax burden on Nigerians and business owners.

According to him: “We do not intend to introduce new taxes or impose higher tax rates. Rather, our mandate is to reduce the number of taxes and levies while harmonising revenue collection to reduce the burden on the people and businesses.

“The objective is to avoid taxing investment, capital, production or poverty. We plan to review and re-enact the major tax laws in a holistic manner thereby limiting the necessity for frequent changes through annual finance acts.”

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Oyedele said the 18 per cent tax-to-GDP ratio mandated by the committee, is targeted at increased revenue by leveraging technology rather than introducing new taxes.

“The average tax to GDP ratio for Africa excluding Nigeria is about 18%. This is the basis for the target of 18% and the estimated tax gap of N20 trillion.

“There is a huge opportunity to generate revenue by leveraging technology and tax intelligence to close the tax gap. In addition, we will rationalise incentives, reduce the cost of collection, and optimise revenue from government assets and natural resources. This way we can generate more revenue without introducing new taxes.”