BY COBHAM NSA – Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, says Nigeria needs lower corporate tax rates to ultimately stimulate investment and the desired economic growth going forward.
He explained that such incentive package will encourage investors, even as the government must focus on addressing regulatory overage, and refining existing tariff systems in the country.
Importantly too, Oyedele expressed worries that the country’s tax system remains unproductive because it is suffering from archaic laws, widespread evasion, complex administrative structure, and low tax morale.
Oyedele, who spoke at a public lecture as part of activities marking his 50th birthday celebration in Abuja, also made a case for an orderly tax system to avoid chaotic taxes that disproportionately impact the poor.
According to him, the tax reform measures must include full income tax exemption for over one-third of workers, higher exemption thresholds for small businesses, and zero-rating essential consumptions.
The ‘Golden Birthday Boy‘ stressed the importance of credible data, inclusive policies, and investing in people, adding that measured steps must be taken to refine the tariff system aimed at reducing rates on raw materials and intermediate products towards lower input costs.
Maintaining that government should deploy credible data for policy decisions rather than relying solely on popular views or sentiments, Oyedele said it is important to prioritize inclusion and national interest over sectional self-interest in policy-making
On how to further expand the nation’s revenue base, he said; “We have priority sector incentives, boosting exports and providing tax relief to prevent public transition for Nigerian businesses operating internationally.
“Others are changes to income class laws to attract remote work opportunities, enabling Nigerian youths to thrive in the digital economy. The government should focus on doing only what the private sector will not do, and collect the least amount of tasks in doing so without compromising compromising the required minimum quality standard.
“The government should be intentional regarding non inflationary spending priority and quality of spending. After all, that is the essence of the socio economic contracts the people must seek first to understand because ignorance compounds vulnerability and steals opportunities, we must think independently, ask questions, engage and, most importantly, criticize constructively with the sole aim to build not to tear apart our nation”.
To achieve the required milestones in economic growth, the Tax Reforms Committee boss urged the government to evolve policies that would make the Naira strong and stable, such as encouraging businesses to pay taxes in Naira despite having a comparative trade balance.
