The Chairman of the Presidential Committee, Tax and Fiscal Policy Reform, Taiwo Oyedele, on Friday, expressed concern over the implications of the country incurring losses of up to N6 trillion annually in tax waivers, which is about the same amount it generates in revenue.
This was made known by Oyedele while featuring on a Channels Television programme, Sunrise Daily, on Friday, November 24, 2023.
He questioned the economic viability of the enormous tax waivers, admitting that the country had failed to measure their impact on the economy.
The tax reform committee chairman however noted the importance of exemptions from value-added tax (VAT) on essentials, including basic food items and medical expenses.
Oyedele argued that without such interventions, the country would “go up in flames,” adding that people could find themselves on the streets if they find life “completely impossible” and they believe that the government is being insensitive.
Oyedele noted that the tax reform committee is considering the manner of these waivers an important area of focus and is going through these incentives individually, interrogating them.
Oyedele said as much as possible, the committee is building “sunset provisions” into those incentives, explaining that one might find that a policy that is beneficial to the nation’s economic circumstances in 2023 could be irrelevant in two years or less.
