President Bola Tinubu has inaugurated the presidential
committee on fiscal policy and tax reforms.
The inauguration took place in Abuja on Tuesday.
In July, the president approved the establishment of the
committee and appointed Taiwo Oyedele, a tax and fiscal policy expert, as its
chairman.
In a statement announcing the development, Dele Alake,
special adviser to the president on special duties, communications and
strategy, said the committee will comprise experts from both the private and
public sectors.
He said the panel would be responsible for various aspects
of tax law reforms, fiscal policy design and coordination, harmonisation of
taxes, and revenue administration.
The special adviser said the committee’s primary objective
is to enhance revenue collection efficiency, ensure transparent reporting, and
promote the effective utilisation of tax and other revenues to boost citizens’
tax morale, foster a healthy tax culture, and drive voluntary compliance.
Speaking on the committee’s establishment, Zacchaeus
Adedeji, special adviser to the president on revenue, emphasised the importance
of a sound fiscal policy environment and an effective taxation system for the
functioning of the government and the economy.
He said Nigeria ranks very low on the global ease of paying
taxes while the country’s tax to gross domestic product (GDP) ratio “is one of
the lowest in the world and well below the African average”.
“This has led to an overreliance on borrowing to finance
public spending which in turn limits the fiscal space as debt service costs
consume a greater portion of government revenue, annually resulting in a
vicious cycle of inadequate funding for socio-economic development,” he had
said.
“While some incremental progress has been recorded over the
years, the outcomes have not been transformative enough to change the
narrative.”
On July 6, Tinubu signed four executive orders, including
the suspension of the 5% excise tax on telecommunication services, as well as
the excise duties escalation on locally manufactured products.
The federal government also suspended the import adjustment
tax (IAT) imposed on certain vehicles and the green tax on single-use plastics
(SUPs).
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