Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has claimed that the Nigerian government has failed to show any tangible results from the more than 60 taxes and levies collected across the country.
He made this assertion during the Senate’s plenary session on Wednesday.
“The fiscal system we currently have stifles growth, as more than 60 taxes and levies are collected nationwide but there is nothing to show for it,” he said.
He further pointed out that the federal government aims to end the situation where Nigerian businesses are forced to pay taxes even when they are operating at a loss, highlighting the need for systemic reforms.
“We do not wish to tax capital or poverty, but investment. We are beginning to lose our tax base to other countries. This is why urgent tax reforms are necessary,” he added.
At the end of Oyedele’s presentation, the lawmakers opted not to ask questions, deciding instead to invite the team again on the next legislative day to clarify aspects of the proposed reforms before making a final decision.
Oyedele’s remarks followed a protest in the Senate on Wednesday over the entry of the Federal Inland Revenue Service (FIRS) Chair, Zacch Adedeji, and consultants to the Upper Chamber.
The Senate suspended its rules to admit Adedeji and the consultants to explain the details of the Tax Reform Bill.
However, before they were allowed entry, a brief uproar occurred as some lawmakers objected to the FIRS Chair’s presence in the chamber.
Oyedele is at the forefront of the controversial proposed Fiscal Policy and Tax Reform Bill.
In October, President Tinubu sent the tax reform bill to the National Assembly, explaining that it aligns with the ongoing financial reforms of the Federal Government and aims to improve efficiency in tax compliance.
Soon after the bill was introduced, it began to generate controversy, with some Northern leaders calling for its withdrawal.
The governors of the 19 Northern states rejected the bill, particularly the proposed amendment to the distribution of Value Added Tax (VAT) to a derivation-based model.
The National Economic Council (NEC) also expressed concerns about the Tax Reform Bill forwarded by President Bola Tinubu to the National Assembly.
NEC unanimously called for the withdrawal of the bill.
However, the presidency clarified that the bill is not aimed at the 19 Northern states.
According to presidential spokesman, Bayo Onanuga, the new proposal, as outlined in the bill, is designed to create a fairer system that will benefit all states.
Despite calls to withdraw the tax reform bills, President Tinubu announced on November 1 that the bills would not be withdrawn from the National Assembly.
He explained that the bills should undergo the legislative process.
A statement signed by Onanuga said: “President Tinubu received the National Economic Council’s recommendation that the tax reform bills already sent to the National Assembly be withdrawn for further consultation. He believes that the legislative process, which has already begun, provides an opportunity for inputs and necessary changes without withdrawing the bills from the National Assembly.”
“While urging the NEC to allow the process to take its full course, President Tinubu welcomes further consultations and engagement with key stakeholders to address any reservations about the bills while the National Assembly considers them for passage.”
The statement further noted that when President Tinubu established the Presidential Committee on Tax and Fiscal Policy Reform in August 2023, his primary goal was to reposition the economy for greater productivity and efficiency and create a more conducive environment for investment and businesses. This goal remains crucial today.