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Nigeria: Presidential tax reform committee proposes scrapping of 190 taxes

Published

1 year ago

October 25, 2023

The Nigerian Presidential Committee on Fiscal Policy and Tax Reforms has recommended discontinuation of 190 taxes choking businesses in the country.

This is according to the panel’s ‘Quick Wins Report’ to President Bola Tinubu, who endorsed its far-reaching recommendations on tax and fiscal policies during a brief ceremony at the Presidential Villa, Abuja, on Tuesday.

During the committee’s report presentation to the president, Mr. Taiwo Oyedele, the chairman, stated that the panel recommended consolidating more than 200 levies that Nigerian businesses were paying into just ten.

Among other things, Oyedele asked for the president to issue Presidential Executive Orders and an Emergency Economic Intervention Bill (Executive Bill) to address the duplication of duties within the public service and to ensure prudent public financial management in an effort to maximise value from government assets and natural resources.

The report is said to be supported by the Organised Private Sector, particularly the telecommunication operators who complained that the sector was one of the most taxed in the country with over 40 taxes directed at telecom firms.

The president congratulated the group on their efforts and assured them of his support for reviewing and implementing the most important recommendations after hearing the committee’s presentation.

‘’I have listened attentively to your report. Charting the critical path forward for Nigeria’s economic recovery is crucial to all of us. I want to say thank you to your delegation,’’ he said.

Meanwhile, the Africa Department Director of the International Monetary Fund (IMF), Abebe Selassie recently said Nigeria must collect more taxes to fund the national budget and pay public debts if its fuel subsidy removal policy and foreign exchange unification initiative were to be optimally beneficial.

Senegal, Kenya, and Tunisia are just a few of the nations that have recently proposed tax reforms. The tax policies enacted throughout the continent have been connected to the decrease in investments.

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IMF mission concludes 4th loan program assessment in Egypt

Published

2 hours ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

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Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

2 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.