During the 153rd Joint Tax Board (JTB) meeting held in Abuja, Mr. Muhammad Nami, the Chairman of JTB and Executive Chairman of the Federal Inland Revenue Service (FIRS), announced that the federal government is set to end taxes on tomatoes and other raw food items. This move is part of the proposed tax reforms led by President Bola Tinubu’s administration.
The primary aim of the tax reform is to exempt non-taxable items from taxation, particularly in the informal sector. Nami emphasized that goods like tomatoes and other raw food items would not be subject to taxes. Furthermore, small businesses generating less than N25 million in revenue will also be exempted from Company Tax and Value Added Tax (VAT).
Nami highlighted President Tinubu’s determination to harmonise taxes and put an end to multiple taxation across the country. The intention behind this initiative is to encourage investment and boost revenue generation. The chairman expressed concern that the current situation of numerous taxes was negatively impacting revenue generation.
By harmonizing taxes and eliminating multiple taxation, Nami explained that the government aims to reduce the number of taxes, plug leakages, and ultimately increase revenue generation. This increased revenue will be channeled towards essential infrastructure projects such as road construction, school development, and healthcare facilities, as well as strengthening security measures.
To ensure successful implementation, a committee has been constituted to oversee the harmonisation process. Nami also sought the support of governors during the National Executive Council (NEC) meeting to end tax multiplicity.
Mrs. Nana-Aisha Obomeghie, the Executive Secretary of JTB, emphasized the importance of sensitization to ensure the public is aware of the taxes they need to pay. The objective is to create awareness about which taxes are applicable and which are not, reducing instances of unknowingly paying illegal taxes.
Mr. Taiwo Oyedele, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, revealed that businesses currently face overwhelming challenges due to various taxes collected by federal, state, and local governments. The harmonization process aims to tackle corruption and tax evasion, making the tax environment more business-friendly.
Revenue collection officers from all 36 states of the federation and the Federal Capital Territory (FCT) participated in the meeting, signifying the collective effort to streamline and improve the tax system in the country. With the inauguration of the tax committee by the President, the stakeholders are optimistic that the promises made will be fulfilled this time, leading to a more efficient and revenue-generating tax system.
