Fiscal policy/Tax: Committee Chairman Call For Robust Reforms In Nigeria 

The Chairman Presidential Committee on Fiscal Policy and Tax Reforms in Nigeria, Taiwo Oyedele, has revealed that the personal income tax revenue for 2023 amounted to just N1.5 trillion, despite declared incomes totaling N15 trillion.

Mr. Oyedele said Nigerians are spending over N50 trillion while declaring only 15 trillion for tax purposes and this discrepancy highlights significant issues of aggressive tax avoidance and ineffective incentives.

He made this known at the just concluded Tax Justice and Governance Platform Annual National Tax Conference organised by Civil Society Legislative Advocacy Centre (CISLAC), adding that the gap gap is unbelievable.

The theme for the Conference was: “Economic Stabilisation for Equity: Ensuring Fairness in Tax Policy,”

Oyedele said Nigerians are spending over N50 trillion while declaring only 15 trillion for tax purposes and this discrepancy highlights significant issues of aggressive tax avoidance and ineffective incentives.

The Chairman Presidential Committee on Fiscal Policy and Tax Reforms  emphasised the critical need for reform, stating, “We have a once-in-a-lifetime opportunity to reform what has been wrong with Nigeria’s Tax system for long.

He expressed optimism about the current administration’s commitment to reform, saying, “You have a president who understands what you’re talking about and who is committed to the process.”

On his part , The Executive Director of CISLAC, Auwal Rafsanjani explained that since the inauguration of the Presidential Committee on Fiscal Policy and Tax Reform, economic conscious Nigerians have anticipated a robust reform initiative to accompany the outcome of the work of the Committee.

Rafsanjani hinted that the importance of national matters to have a national outlook in their designs and approaches. It does not help for reforms to appear as if they are merely the intentions of a select few.

Mr. Rafsanjani said that tax discussions have taken a very deep seat in national discourse, and rightly so.

Participants from various sectors, including government, civil society, labour unions, and the media. They underscored the urgent need for reforms that ensure fair taxation across all income levels.

Key recommendations include making the tax system more progressive to ensure that high-net-worth individuals and large corporations contribute their fair share.

Some of the Participants also warned that the proposed increase in Personal Income Tax (PIT) rates could undermine recent minimum wage gains for low-income earners.

They recommended capping the second tax bracket at 10% and increasing the rate for those earning above N50 million to 26% to balance revenue needs with economic realities.

Those were part of the recommendations in a concerted effort to reshape Nigeria’s tax system, aimed at fostering sustainable economic growth and promoting social equity.

Olusola Akintonde