The Presidential Committee on Fiscal Policy and Tax Reforms is in talks with state governors to seek an agreement for the suspension of certain low-revenue taxes. The aim is to eliminate what the committee terms ‘nuisance taxes’ imposed by states and local government authorities across Nigeria. The Chairman of the committee, Taiwo Oyedele, shared insights on this initiative during an interview on Channels Television, shedding light on the committee’s efforts to drive tax reforms and boost the country’s tax revenue for economic growth and development.
The tax panel, inaugurated by President Bola Tinubu a few months after assuming office, is tasked with championing tax reforms to enhance economic development. One of the key focuses is collaborating with state governors to suspend low-revenue taxes that are deemed counterproductive.
During the interview, Chairman Taiwo Oyedele emphasized that these low-revenue taxes, often referred to as “nuisance taxes,” do not contribute significantly to the state’s coffers and are, in fact, causing issues. Nuisance taxes are fees imposed as a percentage of the selling price of goods or services, and the committee aims to address their impact on the economy.
Oyedele lamented that certain taxes, particularly those related to the transport of goods between the North and the South, have adverse effects on the less privileged. In an effort to alleviate the burden on the poor, the committee is urging states to suspend such taxes that seem to create more problems than benefits.
“We are asking states to suspend nuisance taxes that just create problems,” noted Chairman Oyedele, highlighting the committee’s commitment to ensuring that tax policies contribute positively to economic development without disproportionately affecting vulnerable populations.
