The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, revealed in a Channels Television interview on Monday that the federal government is currently in discussions with state governors to nationwide suspend what he termed as “nuisance taxes.”
Oyedele emphasized that ongoing consultations are taking place to facilitate a smooth execution, while awaiting the necessary legal instrument required for part of the reforms. In August last year, President Bola Tinubu inaugurated the panel with the goal of addressing challenges, implementing transformative reforms in fiscal policy and taxation, and improving revenue collection efficiency.
Oyedele argued that eliminating such taxes, which don’t contribute to government coffers, would both increase government revenue and alleviate the burden on taxpayers.
He said, “We are not waiting for the instrument to be out. Some of it would be, for example, asking states and local governments to suspend nuisance taxes that just create problems with very little revenue to show for it.
“We are already meeting with the governors. In some cases, we will set off small committees to discuss with their team. So, we’re already working on that. Once the thing is signed, there’s no excuse, just implement it like the next day,” he added.
He underscored that once the governors reach an agreement, over 90 percent of the issue would be resolved, with local governments closely following suit.
He said, “So, we’re discussing with the governors first and demonstrating to them why this is good for the local government, good for them and good for us as a people. Once the governors agree, then, we’re not going to ignore the local governments.
“We are now taking a top-down approach, but we will engage with everyone, including during the conference of speakers, and the forums of finance commissioners. We’re engaging with everyone,” he added.
The chairman expressed his belief that a significant portion of the levies collected by tax collectors doesn’t reach the government. He emphasized that the ongoing nationwide chaos of multiple taxation will be eradicated once implementation begins. Referring to the Bureau of Statistics, Oyedele pointed out that, according to 2022 reports from local governments, they collectively failed to amass even N50 billion in a year, despite substantial amounts being taken by non-state actors.
He highlighted the potential for substantial revenue, citing the example of vehicle sticker collections alone, estimating it could generate N50 billion in Internally Generated Revenue (IGR) for a major local government if properly streamlined.
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