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Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reform, said Nigeria was still using the 1939 Stamp Duty Act.
He made the remarks during a Senate meeting to discuss the tax reform bill.
He said: “Many of the laws we have today are inherited from our colonial masters. For example, the Stamp Duty Act is a 1939 law. In 1939, the world had no idea the internet existed. We didn’t expect that. Trying to apply a law that was passed in 1939 in 2024 does not show that we are a people that is ready for the next generation.”
Oyedele explained that the old tax law will no longer apply in 2024, so a new tax law will need to be created.
“So we decided that instead of amending the old laws inherited from our colonial masters, why not create new ones ourselves? This is something that is done in many countries around the world. ,” Oedele said.
He also said the commission is trying to consolidate many taxes into fewer, higher-return taxes.
“This will consolidate the vast number of taxes we have in Nigeria into a few high-income broad-based taxes and eliminate taxes that burden the poorest and small businesses so they have the opportunity to prosper. This is the reason why we decided to do this.”
“The ability to pay taxes comes only when people become wealthy. Our findings make clear that today’s fiscal system is hindering the growth of the private sector. Prior to this, I spent over 10 years researching tax systems in over 180 countries, and I can say with all due respect that Nigeria’s tax system is one of the most backward in the world.
“This does not allow us to realize the vision of a great country that we want and truly deserve. And in addition to issues around tax harmonization, in terms of the priorities and quality of spending and how we borrow, “We also found that the government could do better,” he said.
President Tinubu introduced a tax reform bill to Parliament in October that is in line with the federal government’s ongoing fiscal reforms, and Oyedele is spearheading the controversial fiscal policy and tax reform bill. I want you to remember.
Immediately after the bill was sent to Congress, governors from 19 northern states began to stir controversy by vetoing the bill, particularly the proposed amendments to the value-added tax (VAT) allocation-based model.
The National Economic Council (NEC) also expressed disapproval of the tax reform bill submitted to the National Assembly by President Bola Tinubu.
NEC called for the bill to be withdrawn.
However, the president explained that the bill does not target the 19 northern states, according to the presidential palace.
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