President Bola Tinubu has promised to end Nigeria’s over reliance on borrowing by instituting a viable fiscal policy and tax reforms.
The President said this on Tuesday in Abuja when he inaugurated the Presidential Committee on Fiscal Policy and Tax Reforms at the Presidential Villa.
According to the President, the Inauguration of committee is in line with his promise to remove all barriers impeding business growth in Nigeria.
The committee set up on July 7th is chaired by Fiscal Policy Partner and Africa Tax Leader at PriceWaterhouseCoopers (PwC), Taiwo Oyedele and comprises experts from both the private and public sectors.
The committee has the responsibility for the various aspects of tax law reform, fiscal policy design and coordination, harmonization of taxes, and revenue administration.
MUST READ: Just In : President Tinubu Inaugurates committee of Fiscal policy, Tax reforms
According to the President: “The consequences of the ongoing failure of our tax regime are real and significant. The inability of government to efficiently raise revenue has led directly to an overreliance on borrowing to finance public spending. A government that cannot properly fund itself will also lack the flexibility or fiscal scope to sensibly manage the economy or respond to external shocks.
“Instead, debt service begins to consume an ever greater portion of government’s already meager revenues. This traps the economy in a vicious cycle of borrowing simply to service previous debt and leaves almost no scope for socio-economic development.
“As President, I am determined to end this cycle. On the day of my inauguration, I promised that my administration would address all of the issues impeding investment and economic growth in Nigeria. This promise is why I saw an end to the fuel subsidy. It is the reason the Central Bank has called an end to its multiple exchange rate system under my watch. It is for the same reason we gather here today to inaugurate the Presidential Committee on Fiscal Policy and Tax Reforms.”
Special Adviser to the President on Revenue, Zacch Adedeji, said the inauguration of the committee provides an opportunity to further engage with various stakeholders to identify their pain points and critical concerns bothering on tax and fiscal policies, and to collectively develop the solutions necessary to address these challenges in a holistic manner.”
The chairman of the committee, Oyedele said their is urgent need to address the issue of those who evade tax and get away with little or no consequences.
(EDITOR: TIENABESO BIBIYE)
