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Tax Ombudsman Nwabueze Advocates Trust in Tax Reforms

Nairametrics·
Tax Ombudsman Nwabueze Advocates Trust in Tax Reforms

At the 36th anniversary conference of the Finance Correspondents Association of Nigeria (FICAN) in Lagos, Dr. John Nwabueze, Nigeria’s first Tax Ombudsman, warned against a revenue-first approach to tax reforms. He stated that focusing solely on collection targets without fostering taxpayer trust could jeopardize the sustainability of the tax system.

Nwabueze, represented by his Chief of Staff, Dr. Peter Iwegbu, highlighted that taxpayer confidence and revenue growth can mutually reinforce each other when managed effectively. He pointed out that Nigeria's tax-to-GDP ratio was 8.2% in 2023, significantly lower than the approximate 16% in 38 comparable African economies.

Nwabueze stressed that legislation and enforcement alone cannot achieve sustainable revenue growth, and he urged for transparency and accountability in the tax system. He also noted that technology should simplify the tax process rather than create barriers, emphasizing that the success of tax reforms should be measured by taxpayer understanding and the resolution of legitimate complaints.

Plus234Feed summary based on reporting from Nairametrics.

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