FG to amend tax laws for easy tax harmonization
By Patience Ikpeme
The federal government looks set to amend the country’s tax laws in order to harmonize tax administration and ease of paying taxes.
The chairman, Presidential Committee on Fiscal Policy and Tax Reforms Mr Taiwo Oyedele made known in Abuja at the inauguration of the Committee.
Mr Oyedele was of the view that our tax administration has improved but remains relatively basic because of unregulated collections by untrained officers, especially at the local government levels.
“As a result of this, our revenue generation falls below even African standards , yet our collection cost is the highest”
Mr Oyedele said this happens not only because of multiple taxes but also because of numerous collection agencies and fragmented revenue reporting procedures.
Mr Oyedele expressed the view that many of our fiscal policies could benefit from better crafting, grounded in data and evidence which will ensure coherence and consistency .
He also said “many of the existing laws are outmoded which calls for a need on comprehensive updates, in order to achieve harmonization and address multiplicity of taxes, remove the burden on the poor and vulnerable while also considering big or small investors concerns. ”
He pointed out that public willingness to pay taxes is strained because of lack of trust in government.
“The burden of tax falls heavily on those who comply, while those who evade often get away with little or no consequences”.
Oyedele also pointed out that the process of tax resolution is costly and protracted, many individuals and small businesses can not seek fair tax resolution as professional services are often beyond their means
He noted that these challenges may seem daunting, but they represent a unique opportunity for us to create positive impact.
“We have the chance to revamp our tax policies for a more evitable system, modernize our laws to be adaptable and forward-looking , revitalize our revenue administration, enhance transparency in revenue reporting and exercise prudence in our spending”.
He noted that “these challenges further provide a platform for us to mobilize revenue without introducing new taxes, and we can respond swiftly to our most pressing needs including measures to ease the impact of rising prices (e.g. suspension of VAT on diesel), reduce pressure on the Naira (e.g. cease the payment of taxes and levies in foreign currencies), and amend the laws to encourage remote work opportunities and foster job growth in the digital economy, especially for our teeming youth.”
He said empirical data affirms that Nigerians are willing to fulfil their tax obligations when they see meaningful returns on their tax contribution.
He also said the government is ready to create conducive environment to attract global businesses and also act in the best interest of the nation .
Oyedele gave the assurance that the approach will be long-term focused and comprehensive, addressing fiscal concerns related to sustainable development goals and multi-dimensional poverty and enduring responsible energy transition, and coordinated strategy to elevate revenue reporting and quality of spending.
