The Deputy Speaker revealed that a process of streamlining revenue-collecting agencies, which aims to improve coordination, reduce duplicity in tax administration, and ultimately make the system more efficient and transparent is ongoing.
The House of Representatives has pledged its commitment to ensuring that certain sections of the country’s laws are altered to engender flexibility in tax and fiscal policy reforms in the ongoing constitutional amendment.
This development is coming on the heels of plans to come up with laws that will effectively curtail multiple taxation by tax-collecting entities in the country.
Deputy Speaker, Benjamin Kalu, made the commitment at the World Bank Fiscal Governance and Institutions Project (FGIP) Focus Group Discussion at the Federal Ministry of Finance, Abuja on Wednesday.
Kalu said under the administration of President Bola Tinubu, Nigeria is embarking on a path of fiscal reform that will directly address some of the most pressing issues in the tax system and overall fiscal policy.
He insisted that the commitment to reform is a testament to the dedication of the federal government toward achieving a more robust and equitable economic landscape.
“One of the paramount challenges we are currently addressing as a government, is the issue of tax multiplicity, a labyrinthine web of taxes that has placed undue burdens on both individuals and businesses.
“Simplifying and rationalising this system is imperative to alleviate the compliance burden and to foster an environment conducive to economic growth.
“In parallel, we have recognized the necessity of modernising revenue collection through automation. This strategic move enhances efficiency and, equally important, reduces opportunities for corruption and revenue leakage.”
The Deputy Speaker also disclosed that in a bid to reduce duplicity in tax administration and ensure a transparent system, the government is working to streamline revenue-collecting agencies.
“Furthermore, we are in the process of streamlining the multitude of revenue-collecting agencies as a government. This streamlining initiative aims to improve coordination and, crucially, reduce duplicity in tax administration, ultimately making our system more efficient, transparent, and accountable.
“In the realm of tax legislation which is actually one of your objectives to get the buy-in of the legislators, there are promising opportunities to introduce comprehensive reform bills that encompass a wide spectrum of objectives, including simplification, modernization, and consolidation of tax laws.”
According to him, these reforms hold the potential to bring about increased clarity and efficiency, benefiting both taxpayers and tax administrators. Additionally, we must consider how tax legislation can be strategically crafted to stimulate economic growth.
“Within the ongoing constitutional amendment process, we intend to explore opportunities to amend pertinent sections that will provide greater flexibility for fiscal and tax policy reforms.
“This may involve decentralising certain tax powers, centralising others (as exemplified by the inclusion of Value Added Tax (VAT) on the Exclusive Legislative List), or introducing mechanisms for the automatic adjustment of tax rates based on economic indicators.
“Our tireless endeavours in the realm of tax and fiscal policy, led by President Bola Tinubu, signify a significant transition towards a more efficient, equitable, and investment-friendly environment. As legislators, we shoulder the responsibility of shaping the future of our nation’s fiscal landscape.
“By simplifying tax-related bills, motions, and constitutional alteration bills in a manner that fosters economic growth and streamlines our tax system, we can collectively contribute to the sustainable development and prosperity of Nigeria. Let us persistently work together to advance these critical reforms for the betterment of all Nigerians,” Kalu submitted.