The Federal Government is working towards implementing a single-digit tax regime to alleviate the burden of multiple taxes on Nigerians, according to Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal and Tax Reforms.
In a recent interview on Channels Television, Oyedele revealed that the ongoing tax reforms aim to reduce the number of taxes citizens and businesses are required to pay, with a target of keeping all taxes to single digits once the reforms are completed.
A single-digit tax system would mean that no more than 10 taxes are levied over a specific period.
Oyedele emphasized that the committee is focused on enhancing cooperation between tax authorities and states, especially in the areas of data sharing, tax intelligence, and capacity building.
“Our hope is that when the reforms are concluded, all taxes will be reduced to a single digit,” Oyedele said.
He further explained the vision behind the reforms, stating that they aim to allow specialized authorities to focus on tax collection while other agencies concentrate on their primary mandates.
“We want to let the authorities trained on tax matters collect taxes, while others focus on their primary functions, enabling the economy to grow in a way that benefits everyone,” he said.
Regarding the Nigerian tax administration bill, Oyedele highlighted its importance in streamlining the tax system by improving taxpayer registration, returns filing, assessments, and audits, with an emphasis on technology.
“We are engaging with legislators to ensure that the bill reflects their concerns, and we are working to finalize it,” he added.
Oyedele also criticized Nigeria’s current tax system, describing it as “one of the most backward in the world” and called the situation “embarrassing.”
He urged lawmakers to continue supporting the reforms, stressing that halting them would be a setback for the country.
“In 2024, it would be really sad if the reforms do not go through,” he stated.
On his X account, Oyedele reiterated that the federal government’s goal is to reduce the overall tax burden on Nigerians without compromising revenue generation.
“The plan is to reduce the overall tax burden, not increase it,” he wrote.
He explained that simplifying and harmonizing the tax system, while addressing barriers to investment, would boost economic activities and increase revenue for all levels of government.
Oyedele outlined strategies to ensure tax revenue growth without increasing the tax burden.
These include removing obstacles to business formalization, leveraging technology and data for tax intelligence, simplifying the tax system, and strengthening administrative capacity.
He also emphasized that the reforms would promote fairness in the system by addressing tax evasion.
“This will create a level playing field, ensuring that compliant taxpayers are not implicitly penalized while evaders are held accountable,” he said.
The proposed reforms are expected to benefit both small and large businesses.
As part of the plan, Oyedele noted that the corporate income tax rate would be reduced from 30% to 25% over the next two years, with the elimination of earmarked taxes.
These would be replaced by a harmonized single levy at a reduced rate.
This announcement comes amid growing public concerns over the multiple and rising taxes under President Bola Tinubu’s administration.
