The Federal Government has ruled out the possibility of introducing any new taxes or raising existing tax rates for Nigerians.

Taiwo Oyedele, the Chairman of the Presidential Committee on Tax Policy and Fiscal Reforms, made this clear on Sunday evening through his X (formerly Twitter) account while responding to frequently asked questions about the Presidential Fiscal Policy and Tax Reforms Committee.

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Oyedele emphasized that the committee, under President Bola Ahmed Tinubu’s administration, is committed to reducing the financial burden on individuals and businesses. He stated, “We have no intentions of implementing fresh taxation measures or increasing current tax rates. Our primary goal is to streamline the existing array of taxes and levies while consolidating revenue collection to alleviate the burden on individuals and businesses.”

He further clarified that the objective is to avoid taxing investments, capital, production, or those living in poverty. The committee plans to comprehensively review and revise major tax laws to minimize the need for frequent changes through annual finance acts, as mentioned by Oyedele on the microblogging platform.

Additionally, Oyedele highlighted that the committee has devised strategies to boost revenue by leveraging technology instead of introducing new taxes, with the aim of achieving the 18 percent tax-to-GDP ratio mandated by the committee. He stated, “The average tax-to-GDP ratio for Africa, excluding Nigeria, stands at approximately 18%. This serves as the basis for our 18% target and the estimated N20 trillion tax gap. There is substantial potential to increase revenue by utilizing technology and tax intelligence to close this gap. We also plan to rationalize incentives, reduce collection costs, and optimize revenue from government assets and natural resources. This approach will enable us to generate more revenue without resorting to new taxes.”

Oyedele further emphasized that the committee’s mandate extends beyond the federal government, as it will collaborate with all levels of government to ensure effective cooperation in designing and implementing necessary fiscal policy changes and localizing reforms at the subnational level as needed.