The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has revealed that motorists pay about 73 different taxes to move goods from the northern part of the country to the southern part of the country.
Oyedele, who was speaking on the presidential tax reform on Channel TV, said that such a tax structure is not acceptable as it impedes ease of doing business and adds an unnecessary excessive cost on production.
Describing some of the tariffs as “nuisance taxes”, the head of the committee said they are working closely with both state governors and local government chairmen to ensure that these indirect taxes are suspended to promote a positive business environment.
- “We have seen records of 73 different taxes for just one trip to transport goods from the north to the south. We’ve seen 73 stickers— N2,500, N3,000.
- “This thing is really annoying. You wonder how we got here in the first place in a country where there is a rule of law and government. It should not have happened.
- “Some of the reforms is that we are asking the local government and the state to suspend ’nuisance taxes’ that just create problems with very little revenue to show for it. So we are already meeting with governors. Once the thing is signed, there is no excuse. Just implement it the next day.”
Responding to the issue of revenue generation at the sub-national level, Oyedele emphasized that most local governments in Nigeria are not self-sufficient, adding that they are unable to generate up to N50 billion in one fiscal year.
He said,
- “At the moment, you need to say what are the local government getting now with this current tax structure and what are the disadvantages.
- “According to the Bureau of Statistics for 2022, all the local governments that sent reports to them did not even collect N50 billion in a whole year. So the pain that the people are going through and the chances of the government getting a fiscal exchange from that is zero because the money is not getting to the government.”
What you should know
- In July, President Tinubu set up a Presidential committee on fiscal policy and tax reforms chaired by Taiwo Oyedele. The President stated while setting up the committee, that the administration aims to halt taxing the poor but to promote wealth.
- The committee comprised officials from the public and private sectors, civil society groups, and students.
- Its mandate was to refine the country’s fiscal policy, tax laws, and regulations, and coordinate tax collection.
- The committee aimed to achieve a substantial tax-to-GDP ratio of 18%, alleviate multiple taxation, curb tax evasion, and promote a robust tax culture.
- In November, the Presidential Committee on Fiscal Policy and Tax Reforms produced its quick-win report which includes a set of initiatives that can be quickly implemented.
- The Chairman of the Presidential tax committee had earlier stated that some of the reforms to be introduced would require amendment from the National Assembly.