The Federal Government through its Presidential Committee on Fiscal Policy and Tax Reforms has it will be meeting with state governors to discuss the suspension of some low-revenue taxes to support businesses and enhance economic productivity.
The Chairman of the committee, Taiwo Oyedele, disclosed this during an interview on Channel.
Oyedele who described the low-revenue taxes as “nuisance taxes” said the taxes were negatively impacting the poor as they were imposed on small businesses.
He said, “We are asking states to suspend nuisance taxes that just create problems, with very little revenue to show for it. We are already meeting with their governors, and in some cases, we have set up small committees to discuss with their teams. So once the thing is signed, there won’t be any excuse, it is to be implemented the next day”.
He further stated the taxes do not get to government coffers.
President Tinubu removed subsidies and also unpegged the Nigerian Naira to allow for a more free-floated local currency. This decision, however, dragged on the Nigerian economy except for the Nigerian stock market which is presently the best-performing global stock market with 45% year-to-date profit.
The country’s exchange rate plunged by over 50% on the parallel market while the inflation rate has risen above 28% to further burden businesses and citizens.
The suspension of the low revenue taxes supports businesses and deepens productivity.