Special Adviser to President Bola Tinubu on Media and Public Communications, Chief Sunday Dare, has said many of the taxes currently being enforced by the Federal Government are not new, but levies that had existed for years without effective implementation.
Dare, who spoke on Channels Television’s Hard Copy programme, said the ongoing tax reforms were aimed at modernising Nigeria’s tax system, improving revenue collection and providing the government with the resources needed to finance critical infrastructure and public services.
He said the reforms should not be viewed as an attempt by the Tinubu administration to impose fresh burdens on Nigerians, noting that several existing taxes had remained dormant before the government moved to activate them.
According to him, taxation is a major source of government revenue globally, alongside income generated from natural resources, but Nigeria has historically struggled with a weak tax culture and widespread tax evasion.
“Our tax system has been loose. Our tax culture has the future of irresponsibility. It also has a lot of people evade tax,” Dare said.
He argued that Nigeria’s tax-to-GDP ratio remains among the lowest in Africa, making increased and more efficient revenue mobilisation necessary for sustainable economic development.
Dare said the government has benchmarked the country’s tax system against international standards and is seeking to create a more efficient framework capable of supporting the transition to a modern economy.
He explained that the reforms had also consolidated Nigeria’s numerous taxes, with about 50 different taxes reduced to roughly 11, while exemptions and reliefs were introduced for certain categories of taxpayers.
“This president came in and collapsed 50 taxes to about 11,” he said, adding that the reforms also provided exemptions for some lower-income earners and small businesses.
He maintained that the government had not simply increased taxes across the board, but had introduced provisions aimed at protecting vulnerable taxpayers.
Dare said the government needed increased tax revenue to finance modern roads, airports, healthcare, education, energy infrastructure and transportation, as well as improve workers’ salaries.
“If we want to have the modern roads, the modern airports, a modern health system, a functional transportation system,” he said, the government would require sustainable revenue sources.
The presidential aide’s comments come amid growing public debate over the impact of tax reforms and increased enforcement on households and businesses, particularly at a time when many Nigerians are facing high living costs.
On personal income taxation, tax experts explained that the Pay As You Earn (PAYE) system requires employers to deduct applicable income tax from employees’ salaries and remit the funds to the government.
Under the revised progressive tax system, different tax rates apply to specified income bands, with the objective of making taxation more reflective of taxpayers’ income levels.
The reforms have also changed the structure of tax reliefs and allowances. The Consolidated Relief Allowance (CRA), for instance, has been abolished and replaced with a rent relief arrangement.
Other statutory contributions, including pension, National Housing Fund and applicable health insurance contributions, remain relevant deductions in determining taxable income, subject to the applicable rules.
Dare said the broader objective of the reforms was to establish a tax system aligned with the requirements of a 21st-century economy, while ensuring that government had sufficient resources to meet its development responsibilities.
He urged Nigerians to see taxation as part of the broader process of building a stronger and more sustainable economy rather than solely as an additional financial burden.
SOURCE: tribuneonlineng.com
