Meet Taiwo Oyedele, The chairman of Tax Reforms appointed by Tinubu
A presidential committee on fiscal policy and tax reforms has been established with the approval of President Bola Ahmed Tinubu.
Dele Alake, the President’s Special Adviser on Special Duties, Communications, and Strategy, revealed this on Friday.
Mr. Taiwo Oyedele, a renowned specialist in Fiscal Policy and Africa Tax Leadership at PriceWaterhouseCoopers (PwC), will serve as the committee’s chair.
Professionals from the public and private sectors will make up its membership, and it will be responsible with handling various facets of tax law reform, fiscal policy creation, coordination, tax harmonization, and revenue administration.
President Tinubu acknowledges the need of a stable fiscal policy environment and an effective taxation system for the operation of the government, according to Mr. Adelabu Zacch Adedeji, the Special Adviser to the President on Revenue.
“Nigeria’s global ranking in ease of tax payment is dismally low, while the Tax to GDP ratio is among the world’s lowest and well below the African average,” Adedeji said.
“This has resulted in an overreliance on borrowing to fund public expenditure, subsequently limiting fiscal capacity as debt service costs progressively consume a larger portion of government revenue each year, perpetuating an unpropitious cycle of insufficient funding for socio-economic development.”
Adedeji emphasized that despite the recent modest advancements, the results have not been sufficiently revolutionary to change the dominant narrative.
The multiple taxes and revenue collection agencies, the fragmented and complex tax structure, the low tax morale, the prevalence of tax evasion, the high costs of revenue administration, the lack of coordination between fiscal and economic policies, and the lack of accountability in the use of tax revenue were some of the additional key issues he listed.
The committee’s main goals are to increase the effectiveness of revenue collection, guarantee transparent reporting, and allow the effective use of tax and other revenues in order to raise tax compliance among residents, promote a positive tax culture, and encourage voluntary compliance.
“Our aim is to revamp the tax system to support sustainable development and achieve a minimum Tax to GDP ratio of 18% within the next three years, without stifling investment or economic growth,” emphasised the Special Adviser on Revenue.
“It is important to note that this committee will not only provide advisory recommendations to the government but will also spearhead their implementation, in line with the comprehensive fiscal policy and tax reform agenda of the current administration.”