FG to grow tax-to-GDP ratio from 10% to 18% in three years
The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has said the federal government plans to increase the country’s tax-to-GDP ratio from 10 per cent to 18 per cent in the next two to three years without introducing new taxes.
He stated this at BusinessDay’s Africa Trade Summit and Investment Summit themed “Reimagining Economic Growth in Africa” on Thursday.
Oyedele who decried the multiple taxation in the country, said Nigerians pay over 200 unofficial taxes.
“We are harmonising the number of taxes officially 60, unofficially over 200 across all levels of government combined.”
The chairman also said the committee plans to modernise and amend some laws in line with modern trends and for a more efficient tax system.
He further stated that the government is working towards making Nigeria the most preferred country in Africa for retirement, creative economy, technology research and development.
“We want to be the preferred location in Africa and a competitive one globally. We want companies to start putting their headquarters here so that the C-suite will be here spending their money and booming our economy.
“And also, the preferred land for technology, research and development, energy transition, retirement, business outsourcing, and creative economy,” he added.
Oyedele also said that the committee is working towards efficient fiscal governance, revenue transformation, and facilitating inclusive economic growth and competitiveness.
He added that the committee plans to build a spending framework, stressing the need for the country to reprioritise.
“If we have 130 million people in poverty that do not have access to education, health, and clean water then we shouldn’t build international worship centres when we have no schools, or build airports in states where we have no roads from the farms to the market,” he added.
