President Bola Tinubu has approved the establishment of a presidential committee on fiscal policy and tax reforms.
The President named Taiwo Oyedele, Fiscal policy partner and Africa tax leader at PriceWaterhouseCoopers (PwC), as the chairman of the committee.
The Nation had reported that President 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 Special Adviser to the President on Special Duties, Communications and Strategy, Dele Alake, announced the development in a statement on Friday.
Alake said the committee will comprise experts from both the private and public sectors and be responsible for various aspects of tax law reform, fiscal policy design and coordination, harmonisation of taxes, and revenue administration.
He said the committee’s primary objective is to enhance revenue collection efficiency, ensure transparent reporting, and promote the effective utilization 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, Special Adviser to the President on Revenue Zacchaeus Adedeji, said Tinubu recognises the importance of a sound fiscal policy environment and an effective taxation system for the functioning of the government and the economy.
”Nigeria ranks very low on the global ease of paying taxes while the country’s Tax to 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.
”While some incremental progress has been recorded over the years, the outcomes have not been transformative enough to change the narrative.”