Taiwo Oyedele, Chairman of the Presidential Committee on Tax and Fiscal Policy Reform, has raised alarm over the annual loss of approximately N6 trillion in tax waivers, an amount equivalent to the country’s annual revenue. Speaking on a Channels Television program, Sunrise Daily, Oyedele expressed concern about the economic impact of such significant tax exemptions and questioned the lack of measurement for their effects on the economy.
Confirming the Senate’s recent figure of N6 trillion in tax waivers, Oyedele emphasized the substantial nature of these waivers compared to the country’s revenue base. He highlighted the need for a comprehensive assessment of the impact of tax waivers on the economy.
While acknowledging the importance of exemptions on essential items such as basic food and medical expenses, Oyedele stressed the need to suspend value-added tax (VAT) on items like diesel and import duties. He argued that such interventions are necessary to address social impact and prevent unrest among the population.
The tax reform committee, led by Oyedele, is actively considering a new incentive regime, evaluating existing waivers individually and assessing their impact on the economy. The committee aims to design targeted and measurable incentives, incorporating “sunset provisions” to ensure periodic reviews based on changing economic circumstances.
Oyedele emphasized the importance of using data and stakeholder engagement to determine the duration of incentives, preventing prolonged losses as seen historically. The committee’s focus on a more strategic and data-driven approach aims to address the current challenges associated with tax waivers in Nigeria.
