Presidential Committee Contemplates Income Tax Exemption Expansion to Alleviate Strain on Low-Income Earners

The Chairman of the Presidential Committee on Tax Policy and Fiscal Reforms, Taiwo Oyedele, has revealed that the committee is actively considering a range of strategies, including the broadening of income tax exemptions, as part of its efforts to alleviate financial hardship experienced by low-income earners.

Oyedele made this announcement during a special dinner organized in his honor by the Association of Chartered Certified Accountants, held in Lagos to celebrate his recent appointment.

Addressing the audience, he articulated the committee’s overarching objectives and commitment to easing the financial burden on individuals while establishing a framework for transparent and responsible use of tax revenues.

“We are dedicated to lightening the load on individuals while concurrently establishing a robust system for accountability, transparency, and prudent management of tax funds. Concurrently, our focus will be on aligning with Sustainable Development Goals, encompassing objectives such as eradicating hunger, enhancing access to clean water, boosting employment opportunities, elevating the quality of life, and more,” Oyedele stated.

Dividing the committee’s mandate into three distinct phases, Oyedele emphasized that the initial 30-day period will be devoted to realizing quick wins and making swift, actionable decisions that don’t necessitate altering existing legislation. Among the proposals under consideration, Oyedele shared that the committee is evaluating the possibility of removing Value Added Tax (VAT) from diesel to reduce costs, and also looking into expanding the scope of income tax exemptions. These measures are envisioned to ease financial burdens on the populace.

Rashidat Adebisi, the Chairperson of the Nigerian Advisory Committee of ACCA, as well as the Chief Client Officer of AXA Mansard Insurance, extended congratulations to Oyedele on his new role. She commended his exceptional competence and unwavering character.

In the context of Nigeria’s ongoing challenges related to revenue generation and taxation, Adebisi emphasized the necessity for the administration to enhance the current system. She underscored that a well-structured taxation framework not only ensures financial sustainability but also facilitates socio-economic growth and equitable wealth distribution.

As the Presidential Committee on Tax Policy and Fiscal Reforms moves forward with its multifaceted mission, its commitment to addressing the concerns of low-income earners and fostering a more efficient and transparent taxation system has sparked optimism among citizens. The potential expansion of income tax exemptions, among other strategic measures, holds the promise of alleviating economic strain and promoting a more equitable distribution of resources.