FG Announces Plan To Cancel Over 50 Taxes, Releases Link for Nigerians To Submit Suggestions
- The federal government of Nigeria has revealed plans to cancel over 50 taxes currently paid by companies, and Nigerians
- The Presidential Committee on Tax also disclosed efforts are being made to focus more on important taxes
- Nigerians have been allowed to provide solutions on tax and fiscal policy matters to the president
Legit.ng journalist Dave Ibemere has over a decade of experience covering business and the economy
Taiwo Oyedele, the Presidential Committee on Fiscal Policy and Tax Reforms Chairman, has announced plans to scrap about 50 taxes in Nigeria.
Oyedele explained that this decision aims to help Nigerians meet their tax obligations more easily and reduce the burden of compliance with tax obligations.
Source: Facebook
He disclosed this during a discussion organised by the IMF's Tax Administration Diagnostic Assessment Tool (TADAT) secretariat on Tuesday, November 21, 2023.
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Expected tax reform changes
Speaking on ongoing tax reforms of the Bola Tinubu administration, he revealed that there are over 60 taxes officially and unofficially, nobody knows.
His words:
"I believe the count exceeds 200 taxes. A decade ago, we conducted a study focusing on manufacturers. In one particular state, the cumulative total of taxes across all government levels surpassed 197, and that was for just one state.
"Our current objective is to prioritize the most crucial taxes. You don't need to possess tax expertise to recognize Income Tax, consumption tax such as VAT, Property Tax, and Excise Tax. These taxes are our focus, while we will remove other taxes.
"Furthermore, we intend to standardise the number of taxes, not solely for manufacturers but for everyone. We are presently in the consultation phase to reduce the number of taxes from over 60 to fewer than 10.
Oyedele also revealed that Tinubu's administration plans to use technology for tax collection to build trust and ensure proper accountability and transparency.
He further revealed that ongoing plans exist to create an ombudsperson responsible for protecting small businesses in Nigeria.
Make suggestions to government
Meanwhile, Oyedele, in a post on X, said the presidential committee will organise a public consultation and stakeholder engagement events.
The event will allow Nigerians to suggest expected tax reforms to the government.
The post reads:
"We are pleased to announce the commencement of our public consultation and stakeholder engagement events. Use this link to register.
"Based on requests and feedback, we have extended the deadline for the submission of memoranda till 30 November 2023. Use this link to send your suggestions."
10 banks deposit over N150bn in taxes to government account
Legit.ng earlier reported that 10 commercial banks operating in the country contributed over N155 billion in income tax payments to the coffers of the federal government of Nigeria for 2022.
The amount marks a significant increase of 33.50% from the N116.54 billion paid by the banks during the previous fiscal year, as reported by their financial statements submitted to the Nigerian exchange.
The ten banks that made the list include Zenith Bank, GTCO, UBA, Stanbic IBTC Holdings, FCMB, Fidelity Bank, Sterling Bank, Wema Bank, Unity Bank, and Jaiz Bank.
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Source: Legit.ng
