With the Federal Government’s determination to reform Nigeria’s tax system to aid economic growth, a team of tax experts charged with the responsibility for implementation of the National Tax Policy has been inaugurated at the Kano Hall of the Transcorp Hilton in Abuja on Tuesday.
The Executive Chairman of the Federal Inland Revenue Service
and Chairman of the Joint Tax Board, Tunde Fowler, inaugurated a Technical Tax
Policy Drafting Committee, which began a workshop on National Tax Policy
Implementation same day.
Fowler said he inaugurated the Technical Tax Policy Drafting
Committee same day following the importance and urgency of its assignment to
national economy.
Fowler charged the Technical Committee to work harmoniously and assiduously in order come up, within a few weeks, with a tax policy document that will address achieving sustainability in revenue generation, identifying new and enhancing the enforcement of existing revenue streams and achieving cohesion in the revenue ecosystem.
Fowler said:
“To support work of the reconstituted National Tax Policy Implementation Committee, I’m inaugurating a Technical Tax Policy Drafting Committee.
“I am charging the Chairman and members of the Technical Committee with the responsibility of accelerating the drafting and submission of a draft Finance Bill and if deemed necessary, any draft Executive Order(s), to harmonise the various tax and excise law reform efforts.
“It is our expectation that the Technical Committee will work assiduously over the next few weeks to produce a singular set of fiscal measures that will be considered and approved by the reconstituted NTPIC.
“Once agreed, these fiscal measures are to be submitted to the Economic Management Team and the Federal Executive Council for approval and ultimate transmission to the National Assembly for passage into law as part of the efforts to support the 2020 Executive Budget Proposal.”
The Chairman of the Technical Committee, Ambassador Adeyemi Dipeolu, said he understood the magnitude of the assignment given to him and his committee members and promised that they would work hard to achieve a good result.
Dipeolu said: “The meeting of the Technical Tax Policy
Drafting Committee will be convened immediately after this inauguration.
“We understand the challenges facing the economy and we will
work together to produce a draft tax policy document that will address the
challenges.”
Foreign tax stakeholders in Nigeria such as the International
Monetary Fund and the Department for International Development were represented
at the event.
They commended the initiative and offered some insight
towards achieving the project.
Country representative of the IMF, Amine Mati, said reform of
Nigeria’s tax system is number one in the IMF’s blueprint on Nigeria’s economy.
Mati said: “I welcome the initiative of the Committee.
“It is our number one priority in the economic growth plan
for Nigeria.”
Mati suggested that the Committee should look into Value
Added Tax laws and also ways to further improve non-oil revenue for the country.
Head of DFID’s Economic Development for Nigeria, Richard
Ough, said he felt emotional about the need for reform of Nigeria’s tax system
to accelerate economic development, adding: “This is absolutely fundamental to
Nigeria’s development.”
Other members of the NTPIC include: Comptroller-General,
Nigeria Customs Service (Deputy Chairman); The Permanent Secretary (Finance)
from Federal Ministry of Finance; Permanent Secretary (Special Duties);
Permanent Secretary and Solicitor-General of the Federation, Federal Ministry
of Justice; Director-General of the Budget Office of the Federation;
Director-General of the Debt Management Office; Director-General of the
Securities and Exchange Commission; Statistician-General of the National Bureau
of Statistics; Executive Secretary of Nigeria Investment Promotion Council;
Executive Secretary of the JTB; Deputy Comptroller-General of Customs; and the
Director (Legal) Federal Ministry of Finance.
There has been an ongoing effort on tax reforms.
In May 2018, former Finance Minister, Kemi Adeosun, submitted
a Memorandum to the Federal Executive Council seeking approval to the National
Tax Policy Implementation Committee Report on Tax Law Reforms.
The Former Minister’s memo sought the Cabinet’s approval for:
two distinct Executive Orders, namely: the VAT (Modification) Order and review
to Goods liable to Excise Duties and Application Rate on Sin taxes; five
separate amendment bills covering Companies Income Tax, Personal Income Tax,
Value Added Tax, Individual Development (income and tax relief), Act, and
Customs, Excises and Tariffs; as well as amendments to the Stamp Duties and
associated Gas reinjection Act.
