The Presidential Fiscal Policy and Tax Reform Committee has unveiled plans to initiate tax harmonization in Nigeria, starting with the Federal Capital Territory as a pilot.
This effort aims to streamline tax systems, reduce administrative burdens, and enhance revenue collection.
By testing these reforms in the FCT, the committee hopes to identify effective strategies that can be expanded to other regions, ultimately leading to a more cohesive and efficient tax framework across the country.
The committee’s chairman, Mr. Taiwo Oyedele revealed this in a meeting on revenue administration harmonisation, held in Abuja on Friday, according to Nairametrics.
The event, organized by the FCT Internal Revenue Service, brought together the Area Council Chairmen of the Federal Capital Territory.
This gathering focused on the upcoming pilot for tax harmonization, allowing for discussions on implementation strategies, challenges, and collaboration among local leaders to enhance tax compliance and efficiency in the FCT.
Oyedele clarified that the harmonization and simplification of taxes would not result in reduced revenue, contrary to some assumptions.
He emphasized that the initiative is anticipated to enhance revenue generation by improving compliance and streamlining the tax collection process, ultimately benefiting the economy.
He said, “Harmonisation and simplification of taxes, as well achieving equity and fairness in revenue administration are critical areas of reform for our committee,”
Oyedele expressed strong support for the efforts of the FCT-IRS in harmonising taxes within the Federal Capital Territory.
He urged the FCT and other states to discourage unorthodox methods of collecting taxes, levies, and fees, especially on highways and roads, describing these practices as both embarrassing and unacceptable.
He emphasized the need for a standardized and transparent approach to tax collection that upholds integrity and fosters public trust.
The chairman advocated for adopting technology in revenue collection, highlighting its potential to eliminate tax evasion.
He urged all stakeholders to collaborate for the success of the tax harmonization initiative, emphasizing a collective effort to tackle multiple taxation in Nigeria.
Oyedele also noted that the FCT has the capacity to lead the country in ease of doing business, stressing that all efforts must align to enhance transparency, prevent leakages, and achieve this goal.
The Presidential tax committee, chaired by Mr. Taiwo Oyedele, has consistently advocated for the simplification of tax laws in Nigeria, aiming to reduce the number of taxes.
This initiative seeks to create a more efficient tax system, improve compliance, and make it easier for citizens and businesses to understand their tax obligations.
