Full List: Tax Committee Submits 20 Recommendations to Tinubu for Quick Action, He Responds

• Taiwo Oyedele, who led the presidential tax committee, has submitted its recommendations to President Tinubu
• The recommendations aim to tackle urgent economic concerns, such as exchange rate management, among others
• President Tinubu has directed that all recommendations by the committee be implemented as he looks to reshape the economy
• Dave Ibemere is a senior editor with over 10 years of experience covering business and economy

President Bola Tinubu on Tuesday, October 24, 2023 received the maiden tax reform report from the Fiscal Policy and Tax Reforms Committee set up in July 2023.

The report titled ‘Quick Wins within 30 days’ is expected to help reform the country’s tax sector and also reshape the Nigerian economy.

According to a statement by Presidential spokesperson, Ajuri Ngelale, the President has already directed the recommendations be implemented.

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Details about the tax committee

The Presidential Fiscal Policy and Tax Reforms Committee was set up by Tinubu in July 2023 to review and advise on reforms to shape Nigeria's fiscal policy and tax system.

The Committee’s terms of reference covers fiscal governance; revenue transformation and economic growth facilitation.

The work of the committee is further divided into 3 phases, being Quick Wins within 30 days; Critical Reforms within 6 months and Implementation within 1 year.

Breakdown of 20 recommendations from Tinubu Tax reform team

For clarity, Oyedele, in his official X handle listed the 20 critical recommendations the Committee presented to Tinubu.

1. Measures to address duplication of functions in public service, ensure prudent public financial management and optimize value from government assets and natural resources
2. Policy signalling and collaboration by MDAs, economic management, and policy execution team
3. Use of technology "Data4Tax" to expand the tax net
4. Increase personal income tax exempt threshold and personal relief allowance
5. Tax break for private sector in respect of wage increases to low-income earners, transport subsidy and net increase in employment
6. Permit the payment of taxes on foreign currency denominated transactions in Naira for Nigerian businesses.
7. Remove impediments to global employment opportunities for Nigerians based in Nigeria
8. Suspension of VAT on diesel and tax waivers on CNG, CNG conversion, and renewable energy items
9. Comprehensive review of tariffs on the 43 items unbanned from accessing forex in the official market and fiscal policy review of other items prohibited for imports
10. Reforms of Withholding Tax Regulations to ensure simplicity and ease the pressure on working capital of businesses
11. Facilitate the use of mobile phones for conditional cash transfers and introduce a spending framework for subsidy removal and forex reform windfall, including a national portal to track spending by FG, states and local governments
12. Suspension of multiple taxes which place burdens on the poor and small businesses and compensate with windfalls revenue of certain agencies
13. Expand the official foreign exchange market to incorporate BDCs, forex apps and retail fx dealers, and outlaw transactions in the black market
14. Digitalise Nigeria's fx regime and discourage speculative demands and hoarding of fx in cash
15. Imposition of excise tax on foreign exchange transactions outside the official market
16. Implement forward contracts for the importation of PMS as a short-term measure pending improvement in key economic indices
17. Discontinue with the fx verification portal and requirement for Certificate of Capital Importation and export proceeds restriction
18. Address impediments to export promotion and bottlenecks regarding Exports Expansion Grants, and remove restriction on repatriation and use of export proceeds by exporters
19. Modify Tax ProMax to allow taxpayers to make part payments of outstanding tax liabilities
20. Grant waiver of penalty and interests on the condition of full payment of outstanding tax liabilities on or before 31 December 2023

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Fear as defaulters of income tax in FCT risk 3-year jail term under Wike

In a separate update, Wike has issued a new set of instructions to financial institutions operating in the Federal Capital Territory (FCT).

The minister has directed banks and government agencies in the city to cease offering services to clients who do not possess valid tax clearance.

Consequently, those who fail to comply with the Personal Income Tax requirement may face a three-year prison sentence during Wike's tenure.

Source: Legit.ng