The Federal Government is set to simplify Nigeria’s tax system by implementing a single-digit tax regime as part of its ongoing fiscal reforms.
This was disclosed by the Chairman of the Presidential Committee on Fiscal and Tax Reforms, Taiwo Oyedele on Tuesday.
Oyedele revealed that all taxes would be reduced to a single-digit count once the reforms are concluded, aiming to lessen the tax burden on businesses and individuals.
He noted that the new framework will consolidate multiple taxes to streamline compliance and boost economic activities.
“Our goal is to bring down the number of taxes to single digits. This approach will simplify the system, allowing tax authorities to focus on efficient collection and economic growth,” Oyedele said. “
He added that the reforms include enhancing collaboration between federal and state tax authorities to improve data sharing, tax intelligence, and capacity building.
Oyedele also highlighted plans to reduce the corporate income tax rate from 30% to 25% over the next two years, alongside a harmonised single levy to replace various earmarked taxes.
The reforms come amid growing public discontent over the rising tax burden in the country. According to Oyedele, these changes aim to reduce financial pressure on citizens while ensuring adequate revenue for the government.
“The plan is to lower the overall tax burden, not increase it,” he emphasized, adding that the government is committed to using technology and data intelligence to enhance tax administration and curb evasion.
