FG Set To Recruit, Train New Tax Collectors- Oyedele Reveals

The federal government has hinted on recruitment of new tax collectors or train the existing collectors to be civil in their approach.

The plan is part of the move to reform Nigeria’s tax system as the government searches for revenues to implement its N27.5trn budget.

The Chairman, Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele disclosed in a tweet on Wednesday that it was necessary to streamline multiple taxes in the informal sector and tackle unorthodox methods of collection.

Oyedele said, “We have a choice to recommend that new personnel be recruited and trained to drive compliance or we can train the existing collectors to be civil in their approach.

“While the former may lead to potential backlash, the latter offers a more sustainable solution, avoiding social crises and providing relief to small businesses. Our reforms stand a better chance of success when we find a win-win outcome for all stakeholders than those which seek to alienate others.”

He said the decision was driven by the number of illegal taxies and levies that have hindered businesses in the informal sectors.

The chairman said the country has over 60 taxes, levies and charges across the three levels of government with state and local governments administering 46 taxes and levies.

He highlighted some of the taxes as road taxes, motor park levies, truck, canoe, wheelbarrow and cart fees.

Oyedele said, “There are even more unauthorised taxes all disproportionately affecting small businesses including petty traders, hawkers, artisans, truckers, cart pushers, okada riders and other transporters. The associated costs are inevitably passed on to consumers, mostly low-income earners.

“The payers also have to contend with the unorthodox means of collection and harassment from untrained ‘revenue collectors’ on highways, markets, streets etc while there is very little to show for the revenues collected.”

The tax reform chair said his team has proposed for the repealing of many of the “burdensome taxes, harmonise the few that are justifiable, and digitise the collection process with multiple channels including USSD to drive efficiency, reduce leakages and promote accountability.”