FG Targets Single-Digit Tax System to Ease Tax Burden on Nigerians
By Matthew Eloyi
The federal government is considering a single-digit tax structure aimed at relieving Nigerians from the burden of multiple taxes, according to Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal and Tax Reforms.
Oyedele revealed the reform plans in an interview on Channels Television on Monday.
The proposed system would cut the number of taxes to single digits, meaning fewer than ten taxes would be levied on individuals and businesses, streamlining the tax landscape.
“Our hope is when we are done with our reforms, all the taxes will be down to single digit,” Oyedele stated.
In the interview, themed “Tax Reforms: Why States Should Not Collect VAT,” Oyedele noted that the reforms include enhancing cooperation among tax authorities and states on data sharing, tax intelligence, and capacity building.
He stressed the importance of skilled tax authorities in managing collections, allowing other agencies to focus on their primary mandates to spur economic growth.
Oyedele also highlighted that the Nigerian Tax Administration Bill aims to overhaul taxpayer registration, filing, audits, and the use of technology for tax processes.
“We are engaging with legislators and believe that Nigerian lawmakers have concerns, so we want to summarise the bill for them,” he explained.
Criticizing the outdated tax structure, Oyedele called it “embarrassing” and urged lawmakers to support the reforms.
“Anything that will stop the reforms of Nigeria’s tax system will be really sad, and I think we can work out the differences for the process to continue,” he added.
On his X account, Oyedele assured Nigerians that the reforms will reduce the overall tax burden while generating revenue for the government.
“The plan is to reduce the overall tax burden, not increase it. By simplifying the tax system, harmonising taxes, and addressing impediments to investments, the reforms will boost economic activities,” he said.
The reforms aim to raise revenue through tax simplification, business-friendly policies, and advanced technology. Strategies include removing disincentives to formalize businesses, improving data-driven tax intelligence, and curbing evasion to create a level playing field.
The government also plans to cut corporate income tax from 30% to 25% over the next two years and replace earmarked company taxes with a single, lower-rate levy.
The move follows widespread complaints over excessive taxation under President Tinubu’s administration, with Oyedele’s committee striving to address these concerns with an updated, streamlined tax policy.