FG To Reduce Taxes From 62 To Single Digit — Oyedele

*To Cut Number Of Taxes To 9

President Bola Tinubu’s administration is taking steps to significantly reduce the number of taxes in Nigeria, aiming to streamline the current 62 taxes to a maximum of nine.

This initiative is driven by the goal of creating a more business-friendly environment in the country, as stated by Mr. Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee.

Oyedele made this announcement during the 2023 annual conference of the Institute of Chartered Accountants of Nigeria (ICAN) held in Abuja.

The decision to reduce taxes is prompted by the complexity of the current tax system, which has made tax administration cumbersome and less effective. Oyedele compared Nigeria’s tax revenue of N15.194 trillion in 2022 to South Africa’s N78 trillion revenue for the same period, despite South Africa having only 10 taxes. To achieve the goal of reducing taxes, Oyedele emphasized the need for administrative intervention and constitutional amendments.

Dr. Oluwatoyin Madein, the Accountant-General of the Federation, stressed the critical role of accountants in the nation’s development and called for transparency in both the public and private sectors. She urged accountants to address the unique needs of marginalized communities to ensure inclusivity across various segments of the nation.

Meanwhile, Dr. Innocent Okwuosa, President of ICAN, expressed concerns about growing disparities across socio-economic lines in Nigeria. He highlighted the widening gap between the rich and the poor as a threat to the nation. To address these disparities, he recommended bolstering fiscal management, rationalizing preferential trade restrictions, and tax exemptions. These measures, he suggested, would enhance the business environment, attract foreign direct investments, and reduce inflation.

In a message delivered by the Minister of Power, Mr. Adebayo Adelabu, President Bola Tinubu pledged to create an inclusive, equitable, and prosperous Nigeria. He emphasized that inclusivity is a moral responsibility and called on accountants to engage in discussions on transformative policies that promote inclusive development.

Ms. Asmaa Resmouki, President of the International Federation of Accountants (IFAC), stressed the importance of accountants developing their competences to achieve sustainability and transparency. She highlighted the significance of core competences, including business acumen and ethical behavior, in the accounting profession.