The Political Economic Analytics – a Nigerian-based independent think-tank and research organization have unanimously lauded President Tinubu for Inaugurating the Fiscal Policy and Tax Reform Committee (FPTRC).
The President is highly commended for working the talk as captured in his swearing-in speech on May 29th, 2023, that his Government is going to take action in regards to the multiple taxation complaints and challenges of revenue shortfalls, affecting the nation.
This is no doubt a laudable move by President Tinubu’s administration to tackle problems of a disarticulated tax regime, and official negligence of yesteryears that worsened the case of tax evasion and non-compliance in Nigeria.
For us at Pol Eco Analytics (PEA), this is a patriotic policy stand Nigerians must commend.
Meanwhile, there is no gainsaying that the coming of the Fiscal Policy and Tax Committee (FPTRC) to be chaired by Taiwo Oyedele is a composition of seasoned professionals and vast business experts, saddled with this national task.
The PEA, therefore, demands the demonstration of unwavering determination and commitment amid many difficulties the FPTRC would face in achieving the set goals before them, which includes a three-point focus namely: fiscal governance, tax reform, and growth facilitation.
In addition, is the President’s mandate of ensuring a target of an 18% tax-to-GDP ratio in 12 months – an ambitious agenda of moving away from the current 8% to GDP ratio, as well as seemingly objective to block and bring into the Government’s purse over N20 trillions lost of tax evasion into the economy.
Again, this committee is timely constituted to find lasting solutions to the excesses on the part of over 56 Government agencies’ confusion over their mandates on tax remittance to the Government.
While Pol Eco Analytics acknowledges the fact that the nation deserves such a committee at this time of our national life, because, no serious nation underestimates the importance of fiscal measures and tax administration, especially with the prevailing global economic crunch, off which Nigeria is not spared going by her dwindling economy situation.
However, we anticipate a break from the norm, where successive Governments in the past would inaugurate committees in this manner as a means to compensate their political associates and others.
For us, as an organization and a stakeholder in the Nigeria economy and development project, we believe the Taiwo Oyedele-led-Fiscal Policy and Tax Committee (FPTRC) have its mandate cut out in ensuring we have a suitable fiscal regime and tax instruments of international best practice and business-friendly, at the same time, to boost Government revenues.
The Pol Eco Analytics emphasises the need for the committee to be transparent, build the confidence of all stakeholders and avoid the politicisation of its activities.
Similarly, we suggest the committee must align on how best the detoxification of the tax environment while ridding it of mutual mistrust, negative tax morale, and tax evasion to having effective taxpayers with open engagement and stakeholders dialogue, amongst others.
In the same vein, Pol Eco Analytics urges President Tinubu’s Government to keep to its word of a ‘Renewed Hope’ agenda as a reality for Nigerians, by making the various economic reforms being introduced so far people-oriented and implementable.
