The secretary of the Joint Tax Board (JTB), Mr Olusegun Adesokan, has lauded President Bola Tinubu for his foresight, resilience, and commitment to transforming the Nigerian tax system for greater efficiency and productivity.
Mr Adesokan, who stated this on the sidelines of the subnational consultation organised by the Nigerian Governors’ Forum, NGF, with the Presidential Committee on Fiscal Policy and Tax Reforms in Abuja on 16th January 2025, commended the NGF for reiterating its support for the ongoing tax reform and its constructive intervention on the conversations around the emerging Value Added Tax (VAT) regime.
He also appreciated the Federal Inland Revenue Service (FIRS) executive chairman, who also served as chairman of JTB, Zacch Adedeji, and other stakeholders for supporting the effort to revamp the tax ecosystem.
Mr Adesokan commended the Presidential Committee on Fiscal Policy and Tax Reforms, chaired by Mr Taiwo Oyedele, for their painstaking, thorough and holistic recommendations, noting that the subnational consultation has further deepened understanding of the numerous transformational benefits of the tax reform Bills and engendered consensus among stakeholders.
While stating that JTB, Nigeria’s apex body for tax administration, is fully in support of the tax reform Bills, he expressed confidence that the harmonisation and reduction of tax items to a single digit proposed as part of the reforms will streamline and standardise taxes across jurisdictions for ease of administration, improved compliance and enhanced ease of doing business.
On the benefits of the reforms, Adesokan highlighted key areas and the specific wins they will prompt in the nation’s tax system.
He noted that “the introduction of a revised tax band for individuals will ensure that tax becomes increasingly more progressive, with the lower income earners paying zero or far reduced tax rates in line with President Bola Tinubu’s policy mandate of not taxing poverty.
“The reforms will eliminate nuisance taxes that impose unnecessary burdens on the survival of businesses. It also introduces a zero tax rate for small businesses with an annual turnover of N50 million or less, which will enhance the growth of these businesses and boost their contributions to economic development.”
He added, “At the JTB, we are optimistic that the proposed Joint Revenue Board (JRB) Bill will give the Board an expanded mandate to impact the tax space in a more positive and significant manner, enhancing tax administration at the national and subnational levels.
“Additionally, the Tax Ombuds body, which is a creation of the JRB Establishment Bill, is expected to ensure that the rights of the taxpayers are adequately protected, while the establishment of a Tax Appeal Tribunal (TAT) will expand its current scope to address tax disputes at the national and subnational levels. This will give the TAT a national outlook, enhance transparency and bridge the trust deficit in the nation’s tax ecosystem.”
Speaking further, the JTB secretary said the reforms would create a more effective tax refund system, promote the exchange of information and collaboration among tax authorities, and support the introduction of a single policy document that comprehensively articulates the nation’s fiscal, tax, revenue expenditure, and borrowing trajectory.
Governors, state commissioners of finance, attorneys general, accountants general, and chairmen of state Internal Revenue Service from the 36 States and the F.C.T. attended the subnational consultation.