President Bola Tinubu yesterday inaugurated the Presidential Committee on Fiscal Policy and Tax Reforms and charged the members to improve Nigeria’s revenue profile and business environment, as the Federal Government targets to achieve an 18% tax-to-GDP ratio within three years.
Inaugurating the committee at the State House in Abuja, Tinubu decried the vicious cycle of over-reliance on borrowing for public spending and the burden of debt servicing, which is a huge drain on the government’s revenues.
Specifically, the Committee was tasked to enhance revenue collection efficiency, ensure transparent reporting, and promote the effective utilisation of tax and other revenues to boost citizens’ tax morale, foster a healthy tax culture, and drive voluntary compliance.
The Presidential Committee drawn from the public and private sectors is chaired by Taiwo Oyedele, and given a one-year mandate, which is divided into three main areas: fiscal governance, tax reforms, and growth facilitation.
He also directed all government ministries and departments to cooperate fully with the Committee towards achieving their mandate.
Reiterating the significance of the committee’s assignment, given the expectations from Nigerians, Tinubu said: “We cannot blame the people for expecting much from us. To whom much is given, much is expected.
“Our aim is to transform the tax system to support sustainable development while achieving a minimum of 18% tax-to-GDP ratio within the next three years.
“Without revenue, the government cannot provide adequate social services to the people it is entrusted to serve.
“The Committee, in the first instance, is expected to deliver a schedule of quick reforms that can be implemented within thirty days. Critical reform measures should be recommended within six months, and full implementation will take place within one calendar year.”
Our aim is to transform the tax system to support sustainable development while achieving a minimum of 18% tax-to-GDP ratio within the next three years.
Outdated laws
The Committee Chairman, while pledging members’ commitment to execute their task in the interest of the country, however noted that many of our existing laws are outdated.
Oyedele insisted that “they (laws) require comprehensive updates to achieve full harmonisation to address the multiplicity of taxes and to remove the burden on the poor and vulnerable while addressing the concerns of all investors, big and small.”
Also speaking, the Special Adviser to the President on Revenue, Zacchaeus Adedeji, said members of the Committee were carefully selected, and described them as “highly accomplished men and women with proven records of performance in their careers.”
He noted that Nigeria has huge potential for revenue mobilisation sufficient to cater for the needs of the people without resorting to excessive borrowing.
Adedeji added that the inauguration of the Committee will enable the country to further engage with various stakeholders, identify their concerns around tax and fiscal policies and to collectively develop the solutions necessary to address these challenges in a holistic manner.
“On account of the work the Committee sets out to do, our business environment will become more conducive for local and foreign investment, wealth will be created that will boost government revenue and our country will be better for it,” he said.
