Tinubu who spoke at the inauguration of Presidential Committee on Fiscal Policy and Tax Reforms, chaired by Taiwo Oyedele, on Tuesday at the Presidential Villa, Abuja, charged the committee to improve the country’s revenue profile and business environment as the Federal Government moves to achieve an 18% Tax-to-GDP ratio within three years.
The President directed the Committee to achieve its one-year mandate, divided into three main areas: fiscal governance, tax reforms, and growth facilitation.
He also directed all government ministries and departments to cooperate fully with the committee towards achieving its mandate.
Tinubu told the Committee members the significance of their assignment, as his administration carried the burden of expectations from citizens who wanted government to make their lives better.
”We cannot blame the people for expecting much from us. To whom much is given, much is expected.
”It is even more so when we campaigned on a promise of a better country anchored on our Renewed Hope Agenda. I have committed myself to use every minute I spend in this office to work to improve the quality of life of our people,” he declared.
Acknowledging Nigeria’s current international standing in the tax sector, the President said the nation still faced challenges in areas such as ease of tax payment and its Tax-to-GDP ratio, which lags behind even Africa’s Continental average.
“Our aim is to transform the tax system to support sustainable development while achieving a minimum of 18% tax-to-GDP ratio within the next three years.
”Without revenue, government cannot provide adequate social services to the people it is entrusted to serve.
”The Committee, in the first instance, is expected to deliver a schedule of quick reforms that can be implemented within thirty days. Critical reform measures should be recommended within six months, and full implementation will take place within one calendar year,” the President directed.
In a chat with State House Correspondents after the inauguration, Oyedele explained that “there is a huge tax gap. What that means is, as of today without introducing any new taxes. If you get everyone that needs to pay their taxes to pay, we will not be where we are.”
According to him, tax gap was somewhere in the region of N20 trillion, and assured that the committee will ensure the gap was closed.
“In addition to that, you would also imagine that we have in efficiencies in the way we collect the little that we currently collect, and that inefficiency is coming from… Sometimes, I think in the 2023 budget we have, like 63 MDAs they were given revenue targets. Those MDAs want to be able to focus on their primary duties of why they were established.
“The revenue mandate is a distraction for them. You have the FIRS for example. So FIRS is built up and created to administer taxes efficiently. Imagine that we asked the FIRS to collect those revenues on their behalf.
“So those agencies by focusing on their primary mandate, they will facilitate the economy development we’re looking for. FIRS will collect the revenues efficiently, which means not only is the top line growing, the cost of collection is reducing, and that leads to a much bigger margin to take care of the people.”
Oyedele pledged the total commitment of members to give their best in the interest of the nation.