The Federal Government is planning to introduce a single-digit tax regime to ease the burden of multiple taxes on Nigerians, according to Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal and Tax Reforms.
In a recent interview, Oyedele revealed that the ongoing tax reforms aim to reduce the number of taxes to fewer than 10, making the system more straightforward and efficient for citizens and businesses.
He emphasized that the goal of the reforms is to simplify the tax structure, allowing for the collection of fewer taxes while ensuring the economy grows and benefits everyone. Oyedele explained that the committee is working to enhance cooperation between federal and state tax authorities, particularly in areas like data sharing, tax intelligence, and capacity building.
“Our aim is to reduce the overall tax burden while still ensuring sufficient revenue generation for the country. This will be achieved through tax simplification, harmonizing various taxes, and addressing barriers to investment,” Oyedele said. He added that the reforms would create a more conducive environment for economic growth by removing disincentives to business formalization and increasing administrative efficiency.
The committee’s approach also includes leveraging technology and data to combat tax evasion and create a level playing field for compliant taxpayers. This, Oyedele noted, would contribute to greater revenue collection without placing additional strain on businesses and citizens.
Despite criticisms over the increasing tax burden under the administration of President Bola Tinubu, Oyedele reassured the public that the goal is to lower, not raise, taxes while improving tax collection methods. He described Nigeria’s current tax system as “embarrassingly backward” and emphasized the urgency of the reforms, stating that any delay would be detrimental to the country’s economic progress.
The government’s plans also aim to benefit both small and large businesses, with a proposed harmonized, single levy at a reduced rate to simplify compliance.
