MARKET NEWS

Speaking yesterday at the just concluded first edition of annual workshop for Attorneys General on emerging issues in the communications sector organised by the Nigerian Communications Commission (NCC) in Lagos, Oyedele said about 60 state and none state actors collect taxes, levels, fees and duties across the country. 

The chairman of the Presidential Committee on Tax and Fiscal Reform said all these abnormalities are the reason why Nigeria needs tax reform. 

He said the current tax regime in the country has been unconducive for economic growth and the earlier it was done away with the better for the country.

He said Nigeria is one of the few countries that still use archaic laws in their tax administration. 

While saying that tax reform isn’t about generating more revenue, Oyedele said it is about stabilising the economy and making it grow and sustainable. 

 He said many of the new taxes, levies and charges being debated or passed by the National Assembly are inconsistent with new tax reform law. 

The chairman said his committee would write to the lawmakers to make a law to stop the local government areas across the country from collecting wheelbarrow and bicycle taxes because it doesn’t make sense any longer. 

He said the committee has proposed that Value Added Tax should be collected only by the federal government, but be shared to the states on 90% (to state) and 10% (to Federal) basis. 

He said the committee also proposed that LGAs should collect just one tax, but that they should get from all other taxes collected by FG and states.