FG Receives Progress Report on Tax Laws Reform

By Modupe Gbadeyanka

Federal Government on Friday received the Progress Report on Tax Laws Reform from the National Tax Policy Implementation Committee.

Receiving recommendations of the committee in Abuja, Minister of Finance, Mrs Kemi Adeosun, thanked members of the panel for a thorough job done.

Mrs Adeosun noted that taxation remains the most sustainable way to boost revenue of government and also redistribute wealth from the rich to the poor.

According to her, the administration of President Muhammadu Buhari is committed to growing the nation’s tax system.

The Minister assured the committee, led today by its Vice Chairman, Mr Taiwo Oyedele, that the recommendations would be submitted to the Economic Management Team, National Economic Council, Federal Executive Council and the National Assembly for ratification.

She said, “I want to underscore that this government led by Muhammadu Buhari, came in at a time when oil price was as low as 28 dollars per barrel.

“This led us in search of a revenue base that is sustainable, predictable and can deliver development and succour to the masses.

“One of the functions of the tax system, which many people overlook, is that it is the most reliable tool for government to use to redistribute wealth from rich to poor.

“Many of the programmes we are undertaking will do exactly that, whether it is fixing our roads, or our social interventions like N5, 000 Conditional Cash Transfer to the poorest.

“There is also the N30, 000 to some of our unemployed graduates or the school feeding programme.

“These are all methods of redistribution of wealth from the rich to the poor and that is one of the functions of a good tax system.”

Earlier, Mr Oyedele, said the committee agreed that tax reforms should align with overall government objectives as articulated in the ERGP, National Tax Policy & Ease of Doing Business Plan, such that every action or recommendation would promote & catalyse the realisation of overall objectives.

The committee, according to him, identified seven major tax areas that would have the highest impact: Company Income Tax, Value Added Tax, Customs & Excise Tariff, Personal Income Tax, Pension Contributions, Industrial Development Income Tax Relief (IDITR); and Tertiary Education Trust Fund.

He disclosed that the proposed changes to the tax laws would achieve the following: increase & diversify government revenue, simplify paying taxes and doing business, promote MSMEs, protect vulnerable persons, & remove obsolete, ambiguous and contradictory provisions in the law.

Mr Oyedele added that the committee’s work resulted in two executive orders and five amendment bills. The executive orders include Value Added Tax Act (Modification) Order and Review of Goods Liable to Excise Duties and Applicable Rate Order.

The proposed Amendment Bills: Companies Income Tax Act (Amendment) Bill, Value Added Tax Act(Amendment) Bill, Customs, Exercise, Tariff (Consolidation) Act (Amendment) Bill, Personal Income Tax Act (Amendment) Bill and Industrial Development (Income Tax Relief) Act (Amendment) Bill.