The Presidential Committee on Fiscal Policy and Tax Reforms is meeting with state governors in order to reach an agreement for states to suspend some low-revenue taxes.
The panel said the move would lead to the suspension of ‘nuisance taxes’ by states and local government authorities across the country.
Taiwo Oyedele, the Chairman of the committee, stated this during an interview on Channels Television on some of the initiatives of the committee.
The tax panel was inaugurated by President Bola Tinubu a few months after assuming office. Among other things, the panel is expected to champion tax reforms and help the nation to raise the much-needed tax revenue to enhance economic growth and development.
Oyedele, during the interview, said the low-revenue taxes, which he described as “nuisance taxes” were not adding value to the state’s coffers.
Nuisance taxes are fees imposed as a percentage of the selling price of goods or services.
The tax panel chairman lamented that most of the taxes especially those imposed on the transport of goods from the North to the South and vice versa were negatively affecting the poor.
He said, “We are asking states to suspend nuisance taxes that just create problems, with very little revenue to show for it. We are already meeting with their governors, and in some cases, we have set up small committees to discuss with their teams. So once the thing is signed, there won’t be any excuse, it is to be implemented the next day”
He revealed that despite the widespread collection of certain taxes, the returns were not reaching government coffers.
The tax panel chair also expressed concern over local governments reporting less than N50bn in revenue collection for 2022, citing data from the National Bureau of Statistics.
Oyedele, in a bid to address these challenges, shared updates on the committee’s progress.
He announced that the Emergency Economic Intervention Bill, a pivotal component of the tax reform strategy, is expected to be submitted to the Federal Executive Council for approval.
He said that following the FEC endorsement, the bill would then proceed to the National Assembly.
Oyedele affirmed that the tax reform bill was expected to pass through the National Assembly and receive presidential assent by the end of the first quarter.
Multiple taxations have created significant challenges for businesses with several companies paying various taxes and levies by different levels of government.
The Presidential Fiscal Policy and Tax Reforms Committee was inaugurated on August 8, 2023, with the mandate of addressing these issues. (ChannelsTV)
