The Presidential Fiscal Policy and Tax Reform Committee has announced its plans to use the Federal Capital Territory (FCT) as a pilot for implementing tax harmonisation across Nigeria.
The committee’s chairman, Mr. Taiwo Oyedele, made the announcement during a meeting on revenue administration harmonisation in Abuja , weekend.
The event, organised by the FCT Internal Revenue Service (FCT-IRS), was attended by Area Council chairmen of the FCT. Oyedele emphasised that the harmonisation and simplification of taxes, along with ensuring equity and fairness in revenue administration, are critical areas of focus for the committee.
During the meeting, Oyedele expressed strong support for the FCT-IRS’s efforts in harmonising taxes within the territory. He urged both the FCT and other states to discourage unorthodox methods of collecting taxes, levies, and fees, particularly on highways, roads, and streets, deeming such practices “embarrassing and unacceptable.”
The chairman advocated for the adoption of technology in revenue collection, stating it could significantly reduce tax evasion. He called on all stakeholders to collaborate for the success of the tax harmonisation initiative, stressing the importance of a collective effort to tackle the issue of multiple taxation in Nigeria.
Oyedele highlighted the potential of the FCT to lead the country in ease of doing business, asserting that all efforts must align to prevent revenue leakages and improve transparency.
The committee has consistently pushed for the simplification of tax laws, proposing a reduction in the number of taxes from approximately 60 to just 8 through harmonisation and the elimination of certain detrimental taxes that impact production and businesses. The Federal Executive Council (FEC) recently approved the committee’s recommendations for transmission to the National Assembly for further deliberation.
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