The Presidential Fiscal Policy and Tax Reform Committee has announced plans to use the Federal Capital Territory (FCT) as a pilot for the implementation of tax harmonisation across Nigeria.
Mr. Taiwo Oyedele, the committee’s chairman, revealed this during a meeting on revenue administration harmonisation, held in Abuja on Friday.
The event was organised by the FCT Internal Revenue Service (FCT-IRS) and attended by the Area Council Chairmen of the FCT.
Oyedele clarified that the harmonisation and simplification of taxes will not lead to a reduction in revenue, as some may have assumed.
Instead, he noted, it is expected to boost revenue generation.
He said, “Harmonisation and simplification of taxes, as well achieving equity and fairness in revenue administration are critical areas of reform for our committee,”
Mr. Taiwo Oyedele expressed strong support for the efforts of the FCT-IRS in harmonising taxes within the Federal Capital Territory.
Deployment of technology in tax collection
He urged the FCT and other states to discourage the use of unorthodox methods for collecting taxes, levies, and fees, particularly on highways, roads, and streets, calling such practices both embarrassing and unacceptable.
The chairman advocated for the adoption of technology in revenue collection, stating that it has the potential to eliminate tax evasionHe called on all stakeholders to collaborate to ensure the success of the tax harmonisation initiative, emphasizing the need for a collective effort to address the issue of multiple taxation in Nigeria.
Oyedele further noted that the FCT has the capacity to lead the country in ease of doing business, stressing that all efforts must align to achieve this goal., prevent leakages, and improve transparency.
What you should know
The Presidential tax committee chaired by Mr. Taiwo Oyedele has consistently advocated for the simplification of tax laws in the country leading to the reduction in the number of taxes.
The committee in its proposal seeks to reduce the number of taxes Nigerians pay from around 60 to just 8. This is through harmonisation and blatant removal of certain taxes which hurts production and businesses.
The Federal Executive Council (FEC) in its last meeting approved the recommendations of the committee for onward transmission to the National Assembly for deliberation.
