In a move to eliminate multiple taxation, the Presidential Committee on Fiscal Policy and Tax Reforms has proposed the stoppage of 190 taxes choking businesses in the country.
The panel presented its ‘Quick Win Report’ to President Bola Tinubu, who endorsed its far-reaching recommendations on tax and fiscal policies during a brief ceremony at the Presidential Villa, Abuja, on Tuesday.
The Organised Private Sector, which backed the proposal of the committees blamed states for multiple taxation in the country.
The OPS lamented that multiple taxes had compounded the rising production costs, leading to reduced profit margins, supply chain disruptions, and a reduction in consumer spending.
Specifically, the telecommunication operators complained that the sector was one of the most taxed in the country with over 40 taxes directed at telecom firms.
The Head of Operations, Association of Licensed Telecoms Operators of Nigeria, Gbolahan Awonuga, said the problem of multiple taxes was caused by the state governments.
In response to the toxic business environment, the President inaugurated the fiscal policy and tax reforms in August which was tasked with improving the nation’s revenue profile and business environment.
The Chairman of the committee, Mr Taiwo Oyedele, while presenting his report to the President said the panel suggested the merger of over 200 taxes being paid by Nigerian businesses into 10.
In his prayers to the President, Oyedele, among others, called for an emergency economic intervention bill (Executive Bill) and the issuance of Presidential Executive Orders to address the duplication of functions across the public service, and to ensure prudent public financial management in a bid to optimize value from government assets and natural resources.
Responding to the committee’s presentation, the President commended their work and assured them of his support for the review and implementation of key recommendations.
‘’I have listened attentively to your report. Charting the critical path forward for Nigeria’s economic recovery is crucial to all of us. I want to say thank you to your delegation,’’ he said.
Tinubu granted the request of the committee to address a meeting of the Federal Executive Council and apprise cabinet members of their work and the expected outcomes to facilitate economic growth.
A statement by the Special Adviser to the President on Media and Publicity, Ajuri Ngelale, disclosed that the President directed his Special Adviser on Policy Coordination, Ms. Hadiza Bala Usman, to coordinate with the relevant government officials for the session.
In his remarks, the acting Chairman of the Federal Inland Revenue Service, Mr Zacch Adedeji, pledged to ensure the implementation of the recommendations of the committee, as they may apply, pending the approval of the President.
Adedeji declared that beyond supporting the fiscal and tax reforms, the FIRS would explore opportunities to diversify the nation’s revenue sources, as the historical over-reliance on oil has made the economy vulnerable.
He noted, ‘’Nigeria’s fiscal policy serves as the foundation of economic stability. It dictates how the government collects, manages, and allocates resources for the betterment of our people. A well-developed fiscal policy is crucial for the provision of infrastructure, healthcare, education, and social services to our growing population. Tax reforms are an integral part of a robust fiscal policy.’’
Addressing State House correspondents at a briefing attended by Adedeji and Ngelale, Oyedele argued that multiple taxation had shrunk the Federal Government’s internally generated revenue pool as opposed to increasing it.