Implications of Proposed Tax Reforms on Nigeria’s Revenue and Compliance

The ICAN President believes the Tax reform bills will enhance Nigeria’s revenue and promote tax compliance. Key speakers at an event stressed the need for collaborative efforts on these reforms, highlighting the low tax to GDP ratio in Nigeria. They urged MSMEs to engage in the reform discussions to benefit from the proposed changes once enacted.

The president of the Institute of Chartered Accountants of Nigeria (ICAN), Chief Davidson Chizuoke Stephen Alaribe, stated that the Tax reform bills currently under consideration by the National Assembly will significantly enhance Nigeria’s revenue stream. During a reception in Lagos organized by the Student Pye Alumni, he emphasized the bill’s role in promoting tax compliance and modernizing archaic tax laws to align with global best practices.

Chief Alaribe remarked, “This tax reform bill, if passed into law, will try to bring our tax system in line with best practices and also for once, we’ll get it right.” He further expressed confidence that the reforms would strengthen Nigeria’s revenue generation efforts and improve consumption patterns, thereby benefiting the overall economy.

Mr. Taiwo Oyedele, chairman of the Presidential Fiscal Policy and Tax Reforms, addressed the need for collaboration among government agencies and stakeholders to ensure the effective implementation of the tax reforms. He advocated for tax deductions for startup expenses incurred before business commencement to foster entrepreneurship.

Highlighting the disparity in tax to GDP ratios, Mr. Oyedeji stated, “The tax to GDP ratio for Nigeria is about 7.1%, for South Africa it’s about 29%, and the average for Africa is about 16%.” His comments underscored the urgent need for critical reforms in Nigeria’s tax system.

The Student Pye Alumni class of 1990-1994 commended the two honorees for their achievements and encouraged them to uphold excellence and resilience. They also urged Micro, Small, and Medium Enterprises (MSMEs) to actively engage in discussions concerning the tax reform bills, which aim to facilitate economic growth once enacted by the National Assembly.

In summary, the proposed tax reform bills in Nigeria are poised to transform the country’s revenue framework and enhance tax compliance through modernization of outdated laws. Prominent figures such as ICAN President, Chief Alaribe, and Mr. Taiwo Oyedele highlight the necessity for collaboration and legislative action to ensure positive outcomes. The involvement of MSMEs in these discussions is crucial for realizing the economic benefits of these reforms.

Original Source: tribuneonlineng.com