The Special Adviser to President Bola Tinubu on Media and Public Communications, Chief Sunday Dare, has said that many of the taxes currently levied by the Federal Government are not new, but levies that have existed for years without effective implementation.
Dare, who spoke on Channels Television’s Hard Copy programme, said the ongoing tax reforms were aimed at modernizing Nigeria’s tax system, improving revenue collection and providing the government with the necessary resources to fund critical infrastructure and public services.
He said the reforms should not be seen as an attempt by the Tinubu administration to impose new burdens on Nigerians, noting that several existing taxes had remained dormant before the government moved to activate them.
According to him, taxes are a major source of government revenue globally, along with revenue generated from natural resources, but Nigeria has historically struggled with a weak tax culture and widespread tax evasion.
“Our tax system has been lax. Our tax culture has the future of irresponsibility. Additionally, many people evade taxes,” Dare said.
He argued that Nigeria’s tax-to-GDP ratio remains among the lowest in Africa, necessitating greater and more efficient revenue mobilization 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 around 50 different taxes reduced to about 11, while exemptions and reliefs were introduced for certain categories of taxpayers.
“This president came in and cut 50 taxes to about 11,” he said, adding that the reforms also provided exemptions for some low-income people and small businesses.
He argued that the government had not just raised taxes across the board but had introduced provisions aimed at protecting vulnerable taxpayers.
Dare said the government needed higher tax revenue to fund modern roads, airports, healthcare, education, energy infrastructure and transport, as well as improve workers’ wages.
“If we want to have modern roads, modern airports, a modern health system, a functional transportation system,” he said, the government would need sustainable sources of revenue.
The presidential aide’s comments come amid growing public debate about the impact of tax reforms and greater enforcement on households and businesses, particularly at a time when many Nigerians face high costs of living.
Regarding personal income tax, 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 are applied to specific income bands, with the aim that taxation better reflects taxpayers’ income levels.
The reforms have also changed the structure of tax relief and relief. The Consolidated Assistance Grant (CRA), for example, has been abolished and replaced by a rental assistance agreement.
Other statutory contributions, including pensions, National Housing Fund and applicable health insurance contributions, remain relevant deductions for determining taxable income, subject to applicable rules.
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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 the government had sufficient resources to meet its development responsibilities.
He urged Nigerians to see taxes as part of a broader process of building a stronger and more sustainable economy and not solely as an additional financial burden.
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