The Federal Government is working towards implementing a single-digit tax regime to alleviate the burden of multiple taxation on Nigerians.
This was revealed by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal and Tax Reforms, during an interview on Channels Television.
Oyedele explained that the goal of the ongoing tax reforms is to reduce all taxes to single digits once completed.
A single-digit tax system would mean that citizens and businesses will be required to pay fewer than 10 taxes over a period of time.
“We hope that when the reforms are finalized, all taxes will be reduced to single digits,” Oyedele said.
He added that the committee is working on a framework to improve cooperation between tax authorities and states, focusing on data sharing, tax intelligence, and capacity building.
Further discussing the reforms, Oyedele emphasised the importance of focusing on tax administration by trained professionals, allowing other government bodies to concentrate on their core functions, thereby fostering economic growth that benefits all citizens.
The Nigerian tax administration bill, according to Oyedele, aims to streamline processes such as taxpayer registration, tax return filing, assessments, and audits, all while leveraging technology.
The committee is actively engaging with legislators to ensure their concerns are addressed and the bill can move forward.
Oyedele acknowledged that Nigeria’s tax system is among the most outdated globally, calling the situation “embarrassing.”
He stressed the urgency of continuing the reforms, warning that any setback in the process would be a noteworthy disappointment.
“We are in 2024, and anything that will stop the reforms of Nigeria’s tax system will be really sad,” he stated, expressing optimism that the necessary bills will be enacted to drive the changes forward.
