President Bola Tinubu has challenged Nigerians to be prepared to pay more tax as he expressed his administration’s commitment to break the cycle of over-reliance on borrowing for public spending that results in burden of debt servicing.
Inaugurating the Presidential Committee on Fiscal Policy and Tax Reforms (PCFPTR) in Abuja, he charged the committee to improve the country’s revenue profile and business environment.
A key target set by the Federal Government is to achieve an 18 per cent Tax-to-GDP ratio within three years.
To accomplish this goal, the committee has been given a one-year mandate, which is divided into three main focus areas: fiscal governance, tax reforms, and growth facilitation.
He directed all government ministries and departments to cooperate fully with the committee towards achieving its mandate.
Tinubu said the committee has the responsibility of assisting the administration in meeting the high expectations of citizens to make their lives better.
“We cannot blame the people for expecting much from us. To whom much is given, much is expected. It is even more so when we campaigned on a promise of a better country anchored on our Renewed Hope Agenda. I have committed myself to use every minute I spend in this office to work to improve the quality of life of our people.’’’
Acknowledging Nigeria’s current international standing in the tax sector, the president said the nation was still facing challenges in areas such as ease of tax payment and its Tax-to-GDP ratio.
“Our aim is to transform the tax system to support sustainable development while achieving a minimum of 18 per cent tax-to-GDP ratio within the next three years. Without revenue, government cannot provide adequate social services to the people it is entrusted to serve.
“The Committee, in the first instance, is expected to deliver a schedule of quick reforms that can be implemented within thirty days. Critical reform measures should be recommended within six months, and full implementation will take place within one calendar year,” he directed.
The birth of the committee is in tandem with President Tinubu’s commitment to eliminating obstacles that hinder business growth in Nigeria. The committee, constituted on July 7 is led by Taiwo Oyedele, a seasoned expert in fiscal policy and taxation from PriceWaterhouseCoopers (PwC).
The committee comprises individuals from both the private and public sectors who possess expertise in various domains, including tax law reform, fiscal policy design and coordination, tax harmonization, and revenue administration.
Mr. Oyedele pledged total commitment of members to give their best in the interest of the nation.
“Many of our existing laws are outdated, hence they require comprehensive updates to achieve full harmonisation to address the multiplicity of taxes, and to remove the burden on the poor and vulnerable while addressing the concerns of all investors, big and small,” he said.
Oyedele regretted that those who evade tax get away with little or no consequences, stressing that that need to change.