The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has assured Nigerians that the ongoing plan by the Federal Government to introduce new foreign exchange rules will reflect the true value of the naira.
He also said the plan which would include a crackdown on illicit currency trading, would result in naira closing its gap with the unofficial rate and reaching a “fair price” before the end of 2023.
According to him, the government sees a “fair price” for the dollar at “N650 to N750”.
Speaking in an interview with Bloomberg on Monday, Oyedele added that the government would set transparent rules for the operations of the official market after clearing a backlog of dollar demand estimated at about $6.7 billion.
He said, “The Federal Government plans to introduce new foreign exchange rules, including a crackdown on illicit currency trading.”
Payment Of Taxes In Dollars To Cease By December
In a significant move towards promoting the Nigerian currency and easying pressure on the Naira, Mr Taiwo Oyedele, announced that the practice of paying taxes in foreign currency will be discontinued by the end of this year.
Addressing the issue, Oyedele stated, “If you are a Nigerian company or individual conducting business in naira, why should we pay taxes in dollars? We should not be undermining our own currency by creating unnecessary demand.”
Oyedele further revealed that his committee is actively engaged in discussions with state governors to explore the possibility of suspending multiple taxes that have been a source of frustration for businesses. Additionally, they are exploring avenues to utilize surplus funds from government agencies.
To further expedite economic recovery, Oyedele announced plans to introduce an Emergency Economic Intervention bill. This bill is expected to be presented to the National Assembly before the middle of November. Oyedele expressed optimism, stating, “They have assured us of an accelerated hearing, so we anticipate that by the end of November, this bill will be in operation.”
The Nigerian tax system currently comprises over 60 official taxes, which have posed challenges for businesses and individuals alike. With these proposed reforms, the government aims to streamline the tax process, alleviate burdens on businesses, and bolster the Nigerian economy.
This move is expected to be welcomed by the business community, as it will not only simplify tax payments but also promote the use of the national currency, fostering economic stability and growth.
