Business

Fiscal Policy Committee Proposes Overhaul of Informal Sector Taxes

In a bid to address the complexities and challenges associated with the informal sector’s tax landscape, Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, emphasized the need for streamlining multiple taxes and combatting unorthodox collection methods.

Speaking about the proposed reforms, Oyedele stressed the importance of engaging the public in the fiscal policy discourse. With over 60 taxes, levies, and charges currently in place across the three levels of government, the burden disproportionately affects small businesses, including traders, hawkers, artisans, truckers, and transporters.

Oyedele outlined the committee’s proposal, which involves repealing burdensome taxes, harmonizing justifiable ones, and digitizing the collection process through various channels, including USSD. The goal is to enhance efficiency, reduce leakages, and promote accountability in revenue collection.

Recognizing the social dimension of these reforms, Oyedele presented two potential approaches: recruiting and training new personnel or providing training for existing collectors to ensure a civil and non-confrontational approach. The latter, Oyedele argued, offers a more sustainable solution, avoiding potential backlash and social crises while providing relief to small businesses.

The committee actively welcomes criticism and encourages public engagement, emphasizing its openness to feedback and alternative perspectives. Oyedele urged the public to share their thoughts, ideas, and feedback to refine the proposed approach, highlighting the committee’s commitment to achieving a win-win outcome for all stakeholders.

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