In a bid to overhaul the country’s fiscal policy and tax reform ecosystem, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has declared that the days of being above the law in paying taxes are over.
Speaking at the committee’s closing session on Sunday in Abuja, Oyedele emphasized that the proposed new reforms would target the top 5 per cent of the sector, the middle class, and the elite for taxes. He stated that the committee is in the process of drafting legislation to bring about necessary changes to the country’s fiscal policy and tax reform ecosystem.
“The new laws will ensure that reviews are continued by all governments,” Oyedele said, “We don’t want the entire effort to go to waste after a year or two.”
He urged all stakeholders to fully cooperate with the government in implementing the new fiscal and tax policy for the general good of the citizens by ensuring compliance.
“We think that the days of being above the law in paying taxes are over. The same thing we’re saying to our leaders, whether they are elected or appointed,” he emphasized.
Oyedele disclosed that the Federal Government is developing a system that will provide tax relief to 95% of the informal sector in the country. This relief, he explained, will be achieved by exempting businesses earning N25 million a year or less from various taxes hindering their progress over time.
“So, we think that 95 per cent of the informal sector should be legally exempted from all taxes; withholding tax, company income tax, and even payees on their staff,” he said.
He emphasized that the committee is using data to inform its decisions and called for a review of some of the taxes Nigerians have complained about, which are already in the constitution.
Oyedele assured that the committee report will go through the standard legislative process to obtain full legal backing.