President Bola Tinubu has officially launched the presidential committee dedicated to fiscal policy and tax reforms.
The inauguration event took place in Abuja on Tuesday.
The president has granted approval for the formation of this committee in July.
He appointed Taiwo Oyedele, a recognized expert in tax and fiscal policy, as its chairman.
Dele Alake, the president’s special adviser on special duties, communications, and strategy, issued a statement to announce this development.
The committee will feature professionals from both the public and private sectors.
The Committee’s Mandate
The committee’s scope encompasses a range of areas, including tax law reforms, designing and coordinating fiscal policies. It has also been mandated to harmonize tax structures and improving revenue administration.
The primary goal of the committee is to optimize revenue collection efficiency. Ensure transparent reporting and facilitate the effective utilization of tax and other revenues. This will bolster citizens’ willingness to pay taxes, cultivate a positive tax culture, and encourage voluntary compliance.
Zacchaeus Adedeji, the president’s special adviser on revenue, underscored the significance of a robust fiscal policy framework and an efficient taxation system for the smooth operation of the government and the broader economy.
He said Nigeria ranks very low on the global ease of paying taxes. He added that the country’s tax to gross domestic product (GDP) ratio “is one of the lowest in the world and well below the African average”.
“This has led to an overreliance on borrowing to finance public spending which in turn limits the fiscal space as debt service costs consume a greater portion of government revenue, annually resulting in a vicious cycle of inadequate funding for socio-economic development,” he had said.
“While some incremental progress has been recorded over the years, the outcomes have not been transformative enough to change the narrative.”
On July 6, Tinubu endorsed four executive orders, one of which involved the suspension of the 5% excise tax on telecommunication services.
Additionally, the escalation of excise duties on domestically manufactured goods was also put on hold.
Furthermore, the federal government took action to suspend the import adjustment tax (IAT) that had been imposed on specific vehicles.
The green tax related to single-use plastics (SUPs) was also temporarily suspended.