Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms in Nigeria, Taiwo Oyedele, has raised the alarm that Nigerians are spending over N50 trillion while declaring only 15 trillion for tax purposes and this discrepancy highlights significant issues of aggressive tax avoidance and ineffective incentives.
He said the personal income tax revenue for 2023 amounted to just N1.5 trillion, despite declared incomes totaling N15 trillion.
He noted this at the just concluded Tax Justice and Governance Platform Annual National Tax Conference organised by Civil Society Legislative Advocacy Centre (CISLAC), adding that the gap gap is unbelievable.
This year’s theme is: “Economic Stabilisation for Equity: Ensuring Fairness in Tax Policy,”
He said Nigerians are spending over N50 trillion while declaring only 15 trillion for tax purposes and this discrepancy highlights significant issues of aggressive tax avoidance and ineffective incentives.
Oyedele emphasised the critical need for reform, stating, “We have a once-in-a-lifetime opportunity to reform what has been wrong with our tax system for decades. If we miss this opportunity, I do not think we will have it again in my lifetime.”
Oyedele expressed optimism about the current administration’s commitment to reform, saying, “You have a president who understands what you’re talking about and who is committed to the process.”
Also, the Executive Director of CISLAC, Auwal Ibrahim Musa (Rafsanjani) said more than ever, tax discussions have taken a very deep seat in national discourse, and rightly so.
He explained that since the inauguration of the Presidential Committee on Fiscal Policy and Tax Reform, economic conscious Nigerians have anticipated a robust reform initiative to accompany the outcome of the work of the Committee.
He emphasised the importance of national matters to have a national outlook in their designs and approaches. It does not help for reforms to appear as if they are merely the intentions of a select few.
“It is on this basis that special commendations must be reserved for the National Assembly for suspending proceedings of hearings on the bills for the purpose of consulting and galvanizing country-wide inputs to the reform process.
