With several ills affecting the nation’s tax system, especially in the areas of assessment and collection, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has advocated a comprehensive review of outdated tax laws to streamline taxes and address multiplicity.

Speaking at the inauguration of the committee on Tuesday, Oyedele noted that many of the nation’s existing laws are outdated and require comprehensive updates to achieve harmonisation, tackle the problem of multiplicity of taxes, remove the burden on the poor and address the concerns of investors.

He pointed out that Nigeria’s revenue generation falls below the African average, despite that the nation’s costs of tax collection are rated among the highest globally.

According to him, the major challenges revolve around multiple taxation, numerous collection agencies and fragmented revenue reporting procedures. Although Oyedele admitted that Nigeria’s tax administration has recorded meaningful improvement, he, however, said it remains relatively basic, with instances of unregulated collections by untrained officers, particularly at the local government level.

“Public willingness to pay taxes is strained because of a lack of trust in government, both among individuals and businesses, irrespective of size. The burden of taxation falls heavily on those who comply, while those who evade often get away with little or no consequences. We need to change this.

“Empirical data affirms that Nigerians are willing to fulfill their tax obligations when they see meaningful returns on their tax contributions. We must therefore be intentional in renewing the social contract and, more importantly, act in the best interest of our nation.

“The process of resolving tax disputes is protracted and costly, with inadequate mechanisms for many small businesses and vulnerable individuals to seek fair tax resolution, as professional services are often beyond their means,” he said.

Oyedele said the challenges may seem daunting, but that they also represent a unique opportunity for the country to create a positive impact. He said: “We have the chance to revamp our tax policies for a more equitable system, modernise our laws to be adaptable and forward-looking, revitalise our revenue administration, enhance transparency in revenue reporting, and exercise prudence in our spending.

“These challenges further provide a platform for us to mobilise revenue without introducing new taxes, and we can respond swiftly to our most pressing needs including measures to ease the impact of rising prices (an example is the suspension of VAT on diesel), reduce pressure on the naira (e.g. cease the payment of taxes and levies in foreign currencies), and amend the laws to encourage remote work opportunities and foster job growth in the digital economy, especially for our teeming youth.”