The Presidential Fiscal Policy and Tax Reforms Committee, with Taiwo Oyedele as chairman, was set up by President Bola Ahmed Tinubu to review and advise on reforms to shape Nigeria’s fiscal policy and tax system.

The committee was also set up to develop a robust roadmap that will transform the economy of the country.

The Committee’s terms of reference covers three critical areas: such as Fiscal Governance, Revenue Transformation and Economic Growth Facilitation.

Oyedele, on assumption of office, reassured Nigerians that the Federal Government’s (FG) sustainable fiscal policy and tax reforms would benefit them.

Also, while addressing reporters in Lagos in August, he restated that the panel was out to better the citizenry through sustainable policies.

The committee has presented its reports to the President with key recommendations to address critical economic issues ranging from exchange rate management to the impact of fuel subsidy removal, moderation of inflation, and facilitating economic growth.

Oyedele, while addressing journalists at the Presidential Villa in Abuja on Tuesday, said the committee had fulfilled the first part of the presidential mandate given to them.

He added that the committee will now commence work on the second phase, which is on critical fiscal reforms, adding that the reforms will entail legislative and constitutional amendments that will reduce the over 200 official and unofficial taxes collected from Nigerians across the different federating units to below 10.

The following are things to know about the Oloyede Tax Reform Committee ‘Quick Wins’ Report:

1. It will help to address duplication of functions in public service, ensure prudent public financial management and optimize value from government assets and natural resources

2. The report will be very useful in the areas of policy signalling and collaboration by MDAs, economic management, and the policy execution team.

3. It will involve the use of the technology “Data4Tax” to expand the tax net.

4. The report will play a massive role in increasing the personal income tax exemption threshold and personal relief allowance.

5. It will play the role of a tax break for the private sector in respect of wage increases to low-income earners, transport subsidy and the net increase in employment.

6. The report will allow for the payment of taxes on foreign currency-denominated transactions in Naira for Nigerian businesses.

7. It will help a lot in removing impediments to global employment opportunities for Nigerians based in Nigeria

8. It will bring about the suspension of VAT (Value Added Tax) on diesel and tax waivers on CNG, CNG conversion, and renewable energy items

9. A comprehensive review of tariffs on the 43 items unbanned from accessing forex in the official market and a fiscal policy review of other items prohibited for imports.

10. The Quick Win report will help in the reforms of Withholding Tax Regulations to ensure simplicity and ease the pressure on working capital of businesses

11. It will help to facilitate the use of mobile phones for conditional cash transfers and introduce a spending framework for subsidy removal and forex reform windfall, including a national portal to track spending by FG, states and local governments.

12. Huge relief as it will lead to the suspension of multiple taxes, which place burdens on the poor and small businesses and compensate with the windfall revenue of certain agencies.

13. It will help to expand the official foreign exchange market to incorporate BDCs, forex apps and retail forex dealers, and outlaw transactions in the black market

14. The report will bring about the digitalisation of Nigeria’s fx regime and discourage speculative demands and hoarding of fx in cash.

15. It will bring in the imposition of an excise tax on foreign exchange transactions outside the official market.

16. Implementation of forward contracts for the importation of PMS or petrol as a short-term measure pending improvement in key economic indices.

17. It will help to discontinue the fx verification portal and requirement for Certificate of Capital Importation and export proceeds restriction

18. The report will go a long way in addressing impediments to export promotion and bottlenecks regarding Exports Expansion Grants, and removing restrictions on repatriation and use of export proceeds by exporters.

19. It will help to modify Tax ProMax to allow taxpayers to make part payments of outstanding tax liabilities

20. The report will be useful in granting waivers of penalties and interests on the condition of full payment of outstanding tax liabilities on or before December 31, 2023.