The Nigerian Federal Government is making a plan to implement a single-digit tax structure aimed at simplifying the current tax landscape and easing the heavy burden of multiple taxation on individuals and businesses.
This initiative was disclosed by the Chairman of the Presidential Committee on Fiscal and Tax Reforms, Taiwo Oyedele, in a recent interview with Channels Television.
Oyedele explained that the ongoing reforms target a reduction in the number of tax obligations facing citizens and businesses, consolidating them to fewer than ten different taxes once the overhaul is complete.
“We hope that when the reforms are finalized, all taxes will be reduced to single digits,” he said.
This proposed simplification intends to create a more manageable and streamlined tax framework, alleviating the compliance challenges associated with Nigeria’s current complex system.
The committee, under Oyedele’s leadership, is also crafting a framework to strengthen collaboration between federal and state tax authorities, with a focus on sharing data, improving tax intelligence, and bolstering capacity through training and technical support.
Such measures are expected to harmonize tax administration across Nigeria’s diverse regions and enable more efficient enforcement.
Elaborating further on the reforms, Oyedele underscored the importance of assigning tax administration to specialists within the field, ensuring that other government agencies are freed up to concentrate on their primary functions.
This specialization is expected to support broader economic growth and distribute the benefits of a streamlined tax system to all Nigerians.
In addition to revising tax rates, the committee is promoting a Nigerian tax administration bill that seeks to modernize essential processes, including taxpayer registration, tax return submissions, assessments, and audits.
By integrating technology, the bill aims to make tax administration more efficient and accessible.
The committee has also engaged with legislative stakeholders to address their reservations and garner support for the bill’s passage.
Oyedele pointed out that Nigeria’s tax system ranks among the oldest globally, describing this as “embarrassing” and emphasizing the need for updates.
“We are in 2024, and anything that will stop the reforms of Nigeria’s tax system will be really sad,” he added, urging that the reforms should continue without delay.
With a clear sense of urgency, Oyedele expressed confidence that the necessary legislation will be enacted, setting Nigeria’s tax system on a path to modernization.
