The Chairman, Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has revealed that the external revenue service announced by the President of the United States of America, Donald Trump, could disrupt global trade.
Oyedele said this via his X handle on Monday night, following the inauguration of Trump.
During his inauguration, Trump made true his plan for external revenue service, saying, “Instead of taxing our citizens to enrich other countries, we tariff and tax other countries to enrich our citizens. For this purpose, we are establishing the External Revenue Service to collect all tariffs, duties and revenue. It will be a massive amount of money pouring into our treasury coming from far.”
Reacting to the latest development, Oyedele said, “The 47th President of the United States, Donald J. Trump announced plans to establish an 𝐄𝐱𝐭𝐞𝐫𝐧𝐚𝐥 𝐑𝐞𝐯𝐞𝐧𝐮𝐞 𝐒𝐞𝐫𝐯𝐢𝐜𝐞 to impose tariffs and taxes on other countries.
“This move could disrupt international trade and further complicate the already complex global tax system, highlighting the importance of our ongoing tax reforms.”
He added that by revamping Nigeria’s tax system, “We can better navigate potential challenges and seize any opportunities this development may present.”
Oyedele has been leading the committee working on tax reforms.
On October 3, 2024, President Bola Tinubu transmitted four tax reform bills to the National Assembly: the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.
These bills have sparked debates over equity, implementation, and economic implications, highlighting the challenge of balancing national fiscal policies with regional sensitivities.
While there has been some opposition to the bills, the Nigerian Governor’s Forum last Thursday endorsed a revised Value Added Tax sharing formula aimed at promoting equitable resource distribution among states.
The proposed sharing formula allocates 50 per cent based on equality, 30 per cent based on derivation, and 20 per cent based on population.
Oyedele has since expressed support for the NGF’s proposed sharing formula.
At The Platform, an event hosted by The Covenant Nation on Saturday, Oyedele emphasised the importance of compromise in implementing reforms.
“You also need to consider other things, including political considerations. At the end of the day, if you need to move one kilometre, you don’t have to move all of that at once; you can’t even jump one kilometre at once. Maybe sometimes you need to just move gradually, he said.
