Nigeria Tax Ombud: Calls For Reforms To Ease Business Tax Burden

• Dr. A.B. Ahmad, the Tax Ombud, stated that multiple taxes and levies are significantly harming Nigerian businesses.
• He emphasized that the current tax regime impedes growth, particularly for small and medium-sized enterprises (SMEs), due to high compliance costs.
• Dr. Ahmad urged authorities to simplify digital tax administration, uphold taxpayers' rights, and harmonize tax laws between federal and sub-national governments.
• He also called for a comprehensive review of existing tax laws to eliminate redundant taxes and create a more predictable landscape.
• The Tax Ombud stressed the importance of improved tax education for voluntary compliance and reiterated his office's commitment to a fair and efficient tax system.

Small and medium-sized enterprises (SMEs) bear a disproportionate share of this intricate tax burden, struggling more acutely with the complexities and financial demands.

Dr. A.B. Ahmad, who serves as both the Tax Ombud and Chief Executive of the Office of the Tax Ombud, recently underscored the significant challenges confronting Nigerian enterprises due to a complex and multi-layered tax system. Speaking at the 2023 Annual Conference of the Chartered Institute of Taxation of Nigeria (CITN) in Abuja, Dr. Ahmad articulated how the proliferation of various taxes, levies, and charges is actively hindering business growth and long-term viability across the nation.

He specifically highlighted that the current tax framework acts as a substantial barrier to economic expansion. The sheer number of taxes, particularly those imposed at sub-national governmental levels, creates an excessive financial and administrative load for companies. This intricate environment leads directly to elevated compliance costs, which in turn deters potential investment and stifles entrepreneurial spirit.

Small and medium-sized enterprises (SMEs) bear a disproportionate share of this intricate tax burden, struggling more acutely with the complexities and financial demands. Dr. Ahmad emphasized the critical need for a more streamlined and coherent tax system, one designed to actively promote economic development rather than impede it.

In response to these pressing issues, Dr. Ahmad outlined several key reforms necessary to alleviate the Nigeria Tax Ombud business tax burden. He urged government authorities to prioritize the simplification of digital tax administration processes, making it easier for businesses to meet their obligations. Concurrently, he stressed the imperative for authorities to consistently uphold the rights of taxpayers, fostering a more equitable and trustworthy system.

A crucial recommendation involved greater collaboration between federal and sub-national governments. This partnership is essential for harmonizing disparate tax laws and regulations across different administrative tiers, a move that would significantly reduce the compliance burden currently faced by businesses. Furthermore, Dr. Ahmad called for a comprehensive review of existing tax legislation. The objective of such a review would be to identify and eliminate redundant or overlapping taxes, thereby cultivating a more predictable and transparent tax landscape for all stakeholders. These proposed changes are integral to improving the overall ease of doing business in Nigeria and providing much-needed support to the private sector.

The 2023 CITN conference, aptly themed "Taxation and the Ease of Doing Business," served as a vital platform for these discussions, underscoring the broad concern regarding the current state of taxation in Nigeria. Dr. Ahmad's remarks highlighted that urgent reforms are necessary to support the private sector and ensure a conducive environment for economic activity.

Beyond structural changes, the Tax Ombud also emphasized the importance of improving tax education and awareness among the populace. He argued that a well-informed taxpayer base is fundamental for encouraging voluntary compliance and ensuring the effective administration of tax policies. Ultimately, Dr. Ahmad reiterated the unwavering commitment of the Office of the Tax Ombud to its core mandate: safeguarding taxpayers’ rights and actively promoting the establishment of a fair and efficient tax system throughout Nigeria.

Source: Original reporting via Festus Akanbi, Dike Onwuamaeze and Kayode Tokede