• Inaugurates committee on fiscal policy, sets 18% tax to GDP target
• President knows Nigerians are suffering, says Okonjo-Iweala
President Bola Tinubu, yesterday, expressed his administration’s commitment to break the cycle of overreliance on borrowing for public spending, and the resultant burden of debt servicing it places on management of limited government revenues.
Inaugurating the Presidential Committee on Fiscal Policy and Tax Reforms, chaired by Taiwo Oyedele, the President charged the committee to improve the country’s revenue profile and business environment, as the Federal Government moves to achieve 18 per cent tax-to-GDP ratio within three years.
Tinubu, at the Presidential Villa, directed the committee to achieve its one-year mandate, which is divided into three areas: fiscal governance, tax reforms, and growth facilitation. He also directed all government ministries and departments to cooperate with the committee towards achieving its mandate.
The President, while stressing the significance of its assignment, informed the committee that his administration carries a burden of expectations from citizens who want government to make their lives better.
He said: “We cannot blame the people for expecting much from us. To whom much is given, much is expected. It is even more so when we campaigned on a promise of a better country, anchored on our Renewed Hope Agenda. I have committed myself to use every minute I spend in this office to work to improve the quality of life of our people.”
Acknowledging the country’s current international standing on tax, the President said the nation is still facing challenges in sectors, such as ease of tax payment and its tax-to-GDP ratio, which lag behind even Africa’s continental average.
“Our aim is to transform the tax system to support sustainable development while achieving a minimum of 18 per cent tax-to-GDP ratio within the next three years. Without revenue, government cannot provide adequate social services to the people it is entrusted to serve.
“The committee is expected to deliver a schedule of quick reforms that can be implemented within 30 days. Critical reform measures should be recommended within six months, and full implementation will take place within one calendar year,” the President directed.
Recounting the President’s track record in revenue transformation, the Special Adviser to the President on Revenue, Zacchaeus Adedeji, described the committee members, drawn from public and private sectors, as accomplished individuals.
He said: “Mr. President, you have the pedigree, when it comes to revenue transformation. You demonstrated this when you were the governor of Lagos State, over 20 years ago.”
Oyedele, pledged the commitment of members to give their best in the interest of the nation. “Many of our existing laws are outdated; hence they require comprehensive updates to achieve full harmonisation, to address multiplicity of taxes, and remove burden on the poor and vulnerable, while addressing the concerns of all investors, big and small,” he said.
Also, Director General of World Trade Organisation (WTO), Ngozi Okonjo-Iweala, yesterday, met with President Bola Tinubu at the Presidential Villa, stating afterward that the President is well aware of the suffering of Nigerians.
Okonjo-Iweala, who was accompanied by former Minister of State for Health and minister designate, Dr. Mohammed Pate, explained that her visit was not in her capacity as WTO helmsperson.
Speaking with newsmen, the former Minister of Finance and Coordinating Minister for the Economy revealed that the crux of the meeting was to work out modalities on how to help Nigeria alleviate the suffering of its citizens.
“That’s what’s needed now; helping Nigerians to alleviate the difficult conditions that they are in,” she said.
She said the visit afforded opportunity to talk about investment for the longer term in many sectors in the country, including the pharmaceutical industry.
“We also talked about what type of support the WTO can bring. We are already working in Nigeria with women in particular, who own small and medium enterprises to try to help them upgrade the quality of their products, whether it’s in the agricultural area, textiles, and in other areas so that they can sell more internationally.
“We’re trying to help them with digital trade. The wave of the future is digital trade. So, how do we train and empower Nigerian women and small and medium enterprises throughout the country, create more jobs?
“That’s what’s needed now in Nigeria to alleviate these difficult conditions that they are in. So, that is what we discussed with Mr. President and as the Director General of the World Trade Organisation, we’re going to try to do the most we can to support Nigerians at this particular time,” she said.
The Guardian
