The Nigerian government has revealed a new plan aimed at taxing more Nigerians and businesses, a move that comes despite the ongoing economic hardship being faced by many in the country.
The plan falls under the umbrella of the Economic Stabilisation Bills, which were officially approved by the Federal Executive Council (FEC) during a meeting on Monday.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, made this announcement public through a statement on his verified X account, formerly known as Twitter.
In his communication, Oyedele provided insights into the government’s vision for this new tax plan, which is expected to have widespread implications for both individual taxpayers and businesses across Nigeria.
According to Oyedele, the initiative has been named the Tax Identification Consolidation and Collaboration (TICC). The purpose of the TICC initiative is to broaden Nigeria’s tax base and enhance the overall revenue generated by the government.
By doing so, the government aims to address the financial challenges currently affecting the country, including a budget deficit and limited fiscal space to finance critical developmental projects.
Oyedele explained that the TICC will focus on increasing the number of taxpayers within the system, ensuring that more Nigerians and businesses contribute their share of taxes.
Furthermore, Oyedele pointed out that this initiative is only one aspect of a much larger and more comprehensive fiscal strategy.
The plan includes 15 different tax, fiscal, and establishment laws that have been proposed as part of the government’s efforts to strengthen the economy.
These measures, he emphasized, are critical for facilitating economic stability and laying the foundation for Nigeria’s long-term growth.
The new tax bills have already been forwarded to the National Assembly for approval, according to Oyedele.
Once the bills are debated and passed into law, they are expected to bring significant changes to Nigeria’s tax landscape.
The government is pushing for the introduction of measures that will level the playing field for all businesses, ensuring that both small and large enterprises contribute equitably to the national revenue pool.
In his statement, Oyedele highlighted the importance of creating a tax system that is fair and transparent.
The Tax Identification Consolidation and Collaboration (TICC) initiative, he said, will not only help expand the tax base but will also widen the tax net to capture more potential taxpayers.
This move is aimed at addressing the issue of tax evasion, which has been a persistent problem in Nigeria, especially among businesses operating in the informal sector.
By improving tax compliance and increasing the number of people and businesses who pay taxes, the government aims to reduce its reliance on external borrowing and enhance domestic revenue generation.
The announcement of this plan comes just weeks after the Federal Government denied rumors about an impending increase in the Value-Added Tax (VAT) rate from 7.5 percent to 10 percent.
There had been widespread public uproar following reports that the government was considering such an increase as part of its efforts to boost revenue.
However, the government quickly issued a statement clarifying that there were no immediate plans to raise VAT rates, at least for the time being.
Despite the denial, the issue of VAT adjustment has been a topic of debate for several months.
In fact, during the run-up to the 2023 general elections, the topic of taxation and revenue generation was a major point of contention between the different political parties.
One of the most vocal critics of the government’s approach to taxation has been Atiku Abubakar, the presidential candidate of the Peoples Democratic Party (PDP).
Atiku has consistently argued that any attempt to increase VAT would have a detrimental effect on the Nigerian people, especially those already struggling with the high cost of living.
In a statement earlier this year, Atiku condemned the idea of raising VAT, stating that such a move would “consume the very essence of Nigerian people.”
He warned that increasing taxes at a time when inflation is skyrocketing would only worsen the economic burden on citizens, leading to further hardship.
Atiku’s comments resonated with many Nigerians who are currently grappling with rising costs of goods and services, compounded by inflation and currency devaluation.
Oyedele himself had previously hinted at the possibility of a VAT adjustment.
In May 2024, Oyedele made a public statement indicating that the government was considering to review the current VAT rate as part of its fiscal reforms.
His remarks at the time sparked concerns that an increase in VAT could be on the horizon, especially given the government’s ongoing efforts to shore up revenue.
The introduction of the Economic Stabilisation Bills and the accompanying tax reforms come at a time when Nigeria is facing significant economic challenges.
The country has been grappling with high inflation, which stood at 32.15 percent in August, according to official statistics.
The rising cost of living has left many Nigerians struggling to afford basic necessities.
This has raised concerns about the impact of the government’s new tax measures on ordinary citizens.
As the debate over the government’s tax plan continues, many Nigerians are closely watching the developments in the National Assembly, where lawmakers will ultimately decide the fate of the proposed tax reforms.
It remains to be seen how the government’s efforts to increase tax revenues will affect the country’s economic recovery and whether the proposed measures will provide the much-needed relief to businesses and individuals affected by the current economic downturn.