The government of President Bola Ahmed Tinubu is considering a significant overhaul of Nigeria’s tax system, with a proposal to introduce a single-digit range tax structure to reduce the burden of multiple taxation on citizens and businesses. This plan, once fully implemented, would mean Nigerians would only pay a limited number of taxes, all under ten.

In a recent interview on Channels Television, Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal and Tax Reforms, clarified that the current tax reforms aim to simplify the system by reducing all taxes to single digits. This reform is part of the government’s broader initiative to streamline tax collection and boost economic growth.

Oyedele, during a discussion on ‘Tax Reforms: Why States Should Not Collect VAT,’ emphasized the need for improved collaboration between tax authorities and states, particularly in areas such as data sharing, tax intelligence, and capacity development. He stated, “Our hope is when we are done with our reforms, all the taxes will be down to single digits.”

The reform plan also includes measures to enhance tax administration, with a focus on using technology for efficient tax collection. Oyedele described the current Nigerian tax system as one of the most backward in the world, urging for swift reform processes to address the issue.

The government also aims to reduce the overall tax burden on Nigerians while ensuring adequate revenue generation. The reforms seek to harmonize taxes, eliminate business disincentives, and improve compliance. Oyedele highlighted that small and large businesses would benefit from the introduction of a harmonized single levy at a reduced rate, including a proposed reduction of corporate income tax from 30% to 25% over the next two years.

The proposed reforms come in response to public dissatisfaction with the increasing tax burden under President Tinubu’s administration.