The Tax Reform Committee will engage the public on how to streamline taxes in the country, the Chair of the Committee, Taiwo Oyedele, has disclosed.
Oyedele explained that there are currently over 60 taxes collected by the three tiers of government in Nigeria.
“Currently, there are over 60 taxes, levies and charges across the three levels of government with state and local governments administering 46 taxes and levies, including road taxes, motor park levies, truck, canoe, wheelbarrow and cart fees. There are even more unauthorised taxes all disproportionately affecting small businesses including petty traders, hawkers, artisans, truckers, cart pushers, okada riders and other transporters,” he stated.
He added that the associated costs are inevitably passed on to consumers, mostly low-income earners, adding that payers who have to contend with the unorthodox means of collection and harassment from untrained ’revenue collectors’ on highways, markets, streets etc while there is very little to show for the revenues collected.
Oyedele added: “We propose to repeal many of these burdensome taxes, harmonise the few that are justifiable, and digitise the collection process with multiple channels including USSD to drive efficiency, reduce leakages and promote accountability. We recognise that these reforms also have a social dimension. We have a choice to recommend that new personnel be recruited and trained to drive compliance or we can train the existing collectors to be civil in their approach.
“While the former may lead to potential backlash, the latter offers a more sustainable solution, avoiding social crises and providing relief to small businesses. Our reforms stand a better chance of success when we find a win-win outcome for all stakeholders than those which seek to alienate others.” He said the committee was ready to welcome criticisms and would always cherish the opportunity to engage.
“We are open to and actively seek feedback and ideas from the public. Please share your thoughts, feedback and ideas with us including alternative perspectives to refine our approach,” he said.
