No More Evasion: FG Moves to Implement Tax Law, Meet 18% tax-to-GDP Ratio

• The federal government said it wants to cushion tax evasion in Nigeria
• Through improved tax enforcement schemes, it wants to recover lost revenues
• In three years, it noted that the service wants to achieve a tax-to-GDP ratio of 18%

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

The federal government has committed to solving Nigeria's tax evasion challenges.

Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), said this at the National Commerce and Industry Correspondents Association of Nigeria (CICAN) annual workshop awards.

This comes after Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, announced plans to scrap about 50 taxes in Nigeria.

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Legit.ng reported that President Bola Tinubu's administration is working to prune down taxes in Nigeria from the current 62 to a maximum of nine to create a business-friendly environment.

Lost revenues to be recovered

Adedeji said that the tax service is working on recovering lost revenues as well as preventing tax leakages through improved tax enforcement schemes, Independent.ng reported

This is in line with the federal government's pronouncement to improve the tax-to-GDP ratio to 18% in three years without necessarily imposing additional taxes.

He said this can be achieved through tax law, boosting compliance.

Adedeji, represented by Oyeniyi Fadekemi, noted that all hands would need to be on deck for the reform to be successful.

He said:

We call upon all stakeholders to embrace these reforms, fulfill their tax obligations, and work hand in hand with the government in achieving our common goal of building a strong and resilient economy.

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He also reaffirmed the commitment of the service to creating a level playing field for all taxpayers.

It is instructive to note that part of the Renewed Hope Agenda of President Bola Ahmed Tinubu is to reform the tax system. On assumption of office, he set up a Presidential Committee on Fiscal Policy and Tax Reforms headed by Mr Taiwo Oyedele with other eminent Nigerians representing various institutions and professional bodies with the mandate to reform the tax ecosystem.

Nigeria moves to end taxes on tomatoes, yam, and other raw food items

Legit.ng reported that the Chairman of the Joint Tax Board (JTB), Muhammad Nami, says the Nigerian government has decided to stop taxes on Tomatoes and other raw food items to reduce their costs.

Nami disclosed this at the 153rd JTB meeting held in Abuja recently.

He said ending taxation on the 'non-taxable item' was part of the proposed tax reforms of President Bola Tinubu's administration.

Source: Legit.ng