President Bola Tinubu has taken a significant step towards reshaping Nigeria’s tax policies with the establishment of the Presidential Committee on Fiscal Policy and Tax Reforms, News About Nigeria reports.
The committee has been assigned the crucial task of addressing various aspects of tax law reform, fiscal policy design, coordination, tax administration, and revenue administration.
Mr. Adelabu Zacch Adedeji, the Special Adviser to the President on Revenue, emphasized that President Tinubu recognizes the vital role these reforms play in the functioning of the government and the economy.
Nigeria’s ranking in ease of tax payment is alarmingly low, while the Tax-to-GDP ratio lags significantly behind the African average and global standards, Adedeji noted.
This has resulted in borrowing to meet public expenditure, leading to limited fiscal capacity as debt service costs consume a larger portion of government revenue each year.
Although incremental progress has been made, Adedeji stressed that it has not been transformative enough to bring about substantial change.
The committee’s primary objective is to enhance revenue collection efficiency, promote transparent reporting, and facilitate effective utilization of tax and other revenues to bolster citizens’ tax morale, foster a positive tax culture, and encourage voluntary compliance.
The Special Adviser on Revenue emphasized the committee’s commitment to revive the tax system to support sustainable development, aiming to achieve a minimum Tax-to-GDP ratio of 18% within the next three years, while ensuring it does not stifle investment or economic growth.
