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Nigeria to cut number of taxes to fewer than 10; What to expect?

Nigeria, a country in West Africa, is set to cut the number of taxes levied by federal and state governments from 62 to fewer than 10. The Nigerian federal government, through the Presidential Committee on Fiscal Policy and Tax Reforms, has confirmed the plan, which is aimed at boosting revenues and helping Nigerians to conduct the business. 

The head of a tax reform committee said on Tuesday to reduce the current number of taxes as part of changes to make it easier for Nigerians to conduct business and to boost revenue of the businesses.

Taiwo Oyedele, President Bola Tinubu’s advisor on tax reform, said that Nigeria had 60 official taxes and levies. He further said that the large number of tax reforms was “making life difficult for our people.”

He told reporters, “The more taxes you have, actually, the less revenue you collect.” He also revealed that some people collected money and kept it to themselves. 

What can Nigerians expect?

The President of Nigeria, Bola Ahmed Tinubu, aims to increase the country’s tax revenue from the current 11 per cent of the gross domestic product (GDP) to 18 per cent within three years. 

Taiwo Oyedele said that the new plan would reduce the heavy burden on Nigerian businesses and taxpayers. The move would also simplify the tax system of the country. The Nigerian authorities pledged to eradicate the numerous informal taxes being collected across the country. 

Earlier this month, Taiwo Oyedele said, “What I want and hope to achieve is the reduction of the number of taxes to less than 10, yes, we want a single digit, and we want to cut down revenue collection agencies to one for each tier of government.” 

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Nigeria has been suffering due to poor economic growth and rising inflation. In September, Nigeria’s inflation hit an 18-year high of 25.8 per cent. The Nigerian Naira also hit a record low of 1,000 to the United States Dollar (USD) on the black market. 

Earlier this month, Nigeria also announced a wage rise to state workers. The government also announced a three-month income subsidy for poor families in Nigeria.