The Nigerian government is taking a significant step towards improving its business climate and increasing revenue generation with the introduction of a new data-driven tax system.
The Presidential Committee on Fiscal Policy and Tax Reforms has announced plans to implement a system that will accurately determine tax brackets based on individual and corporate economic activities.
According to committee chairman Taiwo Oyedele, the current tax system is inefficient, with many businesses paying excessive or insufficient taxes.
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The new system, which is modeled after successful implementations in countries like Rwanda, Kenya, and South Africa, aims to address this issue by ensuring that businesses pay the appropriate amount of tax based on their revenue and profitability.
By streamlining the tax collection process and reducing the potential for tax evasion, the new system is expected to provide businesses with greater certainty and predictability, fostering a more conducive environment for investment and economic growth. Additionally, the increased revenue generated from the reformed tax system can be used to fund essential public services and infrastructure projects.
The implementation of the data-driven tax system is a positive development for Nigeria’s business community and a crucial step towards building a more competitive and sustainable economy.
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