…Some of the recommendations of the Committee include: Increase personal income tax exempt threshold and personal relief allowance,
..Tax break for private sector in respect of wage increases to low-income earners, transport subsidy and net increase in employment
WED, OCT 25 2023-theGBJournal|President Bola Tinubu on Tuesday granted the request of the Fiscal policy and tax reforms Committee to address a meeting of the Federal Executive Council (FEC) and apprise cabinet members of their work and expected outcomes to facilitate economic growth.
The Committee, tasked with improving the nation’s revenue profile and business environment, was at the Presidential Villa to present the President with the ‘Quick Win Report’ on fiscal policy and tax reforms.
Responding to a presentation by Mr. Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, the President commended their work and assured them of his support for the review and implementation of key recommendations.
”I have listened attentively to your report. Charting the critical path forward for Nigeria’s economic recovery is crucial to all of us. I want to say thank you to your delegation,” he said.
The President directed Ms. Hadiza Bala Usman, the Special Adviser on Policy Coordination, to coordinate with the relevant government officials for the session.
Some of the recommendations of the Committee include:
-Increase personal income tax exempt threshold and personal relief allowance,
-Tax break for private sector in respect of wage increases to low-income earners, transport subsidy and net increase in employment,
-Suspension of VAT on diesel and tax waivers on CNG, CNG conversion, and renewable energy items,
-Comprehensive review of tariffs on the 43 items unbanned from accessing forex in the official market and fiscal policy review of other items prohibited for imports.
In his remarks, the Acting Chairman of the Federal Inland Revenue Service (FIRS), Mr. Zacch Adedeji, pledged to ensure the implementation of the recommendations of the Committee, as they may apply, pending the approval of the President.
Mr. Adedeji declared that beyond supporting the fiscal and tax reforms, the FIRS will explore opportunities to diversify the nation’s revenue sources, as the historical overreliance on oil has made the economy vulnerable.
”Nigeria’s fiscal policy serves as the foundation of economic stability. It dictates how the government collects, manages and allocates resources for the betterment of our people. A well-developed fiscal policy is crucial for provision of infrastructure, healthcare, education and social services to our growing population. Tax reforms are an integral part of a robust fiscal policy.
”While our current tax system has contributed significantly to our revenue, there remains room for further enhancement; enhancement that can be driven with digital technology. To achieve this, we are collaborating with the Presidential Committee to streamline our tax laws, improve voluntary compliance, and expand the tax base to ensure equity and fairness,” the Acting FIRS Chairman said.
In his prayers to the President, Mr. Oyedele, among others, called for an emergency economic intervention bill (Executive Bill) and the issuance of Presidential Executive Orders to address the duplication of functions across the public service, and to ensure prudent public financial management in a bid to optimize value from government assets and natural resources.
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