The Federal Government is eyeing a single-digit tax regime to reduce the burden of multiple taxation on Nigerians.
Chairman Presidential Committee on Fiscal and Tax Reforms, Taiwo Oyedele revealed this on his X account on Monday.
Oyedele also said the federal government will reduce the overall tax burden on Nigerians while still ensuring that enough revenue is generated in the country.
“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 and therefore enhance revenue generation for all tiers of government,” Oyedele said.
He outlined strategies the government will be implementing to ensure that tax revenue increases without raising the tax burden. Such strategies include: the removal of disincentives to business formalisation, use of technology, data for intelligence, and tax simplification.
“This will ensure that we can raise tax revenue without raising tax burden, through various strategies including removal of disincentives to business formalisation, use of technology and data for intelligence, tax simplification and enhanced administrative capacity. Beyond raising revenue, curbing tax evasion also ensures that there is a level playing field for all rather than implicitly penalising compliant taxpayers and rewarding evaders,” he said.
He noted that the reforms by the government will benefit small and large businesses as there will be a harmonised single levy at a reduced rate.
“Some of the proposals include reduction of corporate income tax rate from 30 per cent to 25 per cent over the next 2 years and elimination of earmarked taxes on companies to be replaced with a harmonised single levy at a reduced rate,” he said.
The development comes following public outcries over multiple and increasing taxation by the President Tinubu’s administration.
