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The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has expressed concern over Nigeria’s tax system, stating that the country cannot become wealthy by taxing its most vulnerable citizens. Speaking during a two-day retreat for the Integrated National Financing Framework Core Working Group in Lagos, Oyedele criticized the current tax structure, which disproportionately affects the poor while allowing wealthier individuals to evade taxes.
“Our revenue percentage is embarrassingly low because we mostly collect taxes from the vulnerable people and allow the upper middle class, the elite, and the politicians to evade tax,” Oyedele remarked. He added that it’s counterproductive to overtax low-income earners, such as vulcanizers and market traders, while many wealthier citizens avoid their tax obligations.
He emphasized, “We can’t become a wealthy country by taxing poverty,” and questioned why individuals earning as little as 30,000 Naira are subject to Personal Income Tax.
In response to this issue, Oyedele revealed that efforts are underway to reform the tax system, ensuring that those who have been evading taxes are appropriately taxed for better revenue generation.
The retreat also addressed broader financial issues, with Dr. Tony Muhumuza, a Senior Economic Advisor at the United Nations Development Programme, highlighting the challenges African countries face due to unfair credit ratings, which result in higher borrowing costs compared to other regions.
