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Nigeria: Presidential tax panel wants ‘nuisance tax’ abolished

Published

11 months ago

January 22, 2024

Nigeria’s Presidential Committee on Fiscal Policy and Tax Reforms wants states to suspend some low-revenue taxes.

The panel, constituted shortly after President Tinubu’s inauguration, is expected to support tax reforms and assist the country in obtaining the necessary tax income to support economic development.

This committee chairman, Taiwo Oyedele, in an interview on Sunday, predicted that states and local governments across the nation would stop imposing “nuisance taxes” as a result of the action. Oyedele said that the low-revenue levies were not bringing in more money for the state.

The term “nuisance tax” refers to the kind that is applied as a percentage of the selling price of products or services, paid by the buyer, and forwarded by the vendor to the relevant taxing body.

The head of the tax panel bemoaned the fact that the poor were disproportionately affected by most taxes, particularly those imposed on the movement of products from the North to the South and vice versa.

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.”

Citing data from the National Bureau of Statistics, Oyedele also voiced concern over local governments reporting less than N50 billion in revenue collection for 2022.

Oyedele provided updates on the committee’s work in an effort to address these issues. He declared that the Federal Executive Council would likely get the Emergency Economic Intervention Bill, which is a crucial part of the tax reform plan. He stated that the bill would move on to the National Assembly after receiving the FEC’s approval.

The Nigerian government has been working to overhaul the nation’s monetary and fiscal policies since the start of the Bola Tinubu administration. This has resulted in the central bank and the Oyedele-led tax advisory council implementing daring new policies.

Related Topics:Featured Nigeria Taiwo Oyedele Tax Reform

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Moroccan annual inflation rises to 0.8% in November

Published

1 day ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”