The federal government is strategizing to expand the tax base by including more eligible individuals and entities. This will boost revenue and fulfil its obligations to citizens.
It aims to actualise this objective through a “Tax Identification Consolidation and Collaboration (TICC) project.”
With the introduction of the Economic Stabilisation Bills (ESB) to the National Assembly, the project aims to broaden the tax net and increase the tax base.
Taiwo Oyedele, chairman of the Presidential Fiscal Policy and Tax Reforms Committee, said on his X handle that the initiative is part of the 15 bills set for amendment as approved by the Federal Executive Council (FEC) on Monday.
“Part of the plan is the introduction of ‘Tax Identification Consolidation and Collaboration (TICC)’ initiative to expand the tax base, widen the tax net, and create a level playing field for businesses,” he noted.
In addition, the government plans to partner with state governments in order to temporarily exempt specific taxes on small businesses and vulnerable individuals, offering them a much-needed respite.
The federal government intends to woo states to eliminate taxes such as road haulage levies and other charges on transportation of goods; business premises registration; animal trade and produce sales tax; bicycle, truck, canoe, wheelbarrow, and cart fees; shops, kiosks and market taxes and levies.
“The ESB seeks to amend about 15 different tax, fiscal, and establishment laws to facilitate economic stability and set the country on the path for sustained inclusive growth,” Oyedele said.
Other objectives in the proposed bills include changes designed to reduce inflation and stabilise prices.
Moreover, the proposed bills are expected to promote fiscal discipline and consolidation, enhance job creation and poverty alleviation, and function as catalysts for export promotion and diversification.
The key changes to be made to the various laws include amendments to the income tax laws to facilitate employment opportunities for Nigerians in Nigeria within the global value chain, including the digital economy.
He further said that the Nigerian government must demonstrate that it is properly utilising tax revenues before propping the citizens to pay.
“Taxes are never popular. That’s true in America too. But they’re part of a social compact. People are more likely to pay them when they see the government spending that money to give Nigerians a better life.”
The Nigerian Economic Society (NES) recently warned that Nigeria’s slowing revenue generation may pose significant challenges to its economic growth and citizens’ social well-being.
Adeola Adenikinju, president of NES, presented this in a report at the 65th annual conference of the economic group in Abuja.
