Nigeria is set to drastically reduce its numerous taxes by over 87%, from more than 60 to just 9, in a bid to boost revenue and make tax payment easier for residents.
Gatekeepers News reports that the Presidential Fiscal Policy and Tax Reforms Committee has proposed retaining only the income tax, value added tax, property tax, customs duties, excise tax, stamp duties, special levy, harmonized levy, and social security contribution.
“The implementation is expected to kick in by January next year, if everything goes according to our plan,” said Taiwo Oyedele, Chairman of the panel.
The committee aims to secure approvals from lawmakers and the president by the end of the third quarter.
The move is part of Nigeria’s efforts to increase its tax revenue to GDP ratio, currently one of the lowest in the world at 10%.
The government aims to raise it to 18% by 2027.
The tax reforms committee has also recommended increasing value-added tax on non-essential items, while reducing tax on basic necessities like food, housing, transportation, education, and health to protect vulnerable Nigerians.
“We made proposals that will help our country,” Oyedele said. “Our recommendations are quite bold.”
