The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Dr. Taiwo Oyedele, has reiterated the need for African governments to remove disincentives to investment and barriers to economic growth in order to sustainably improve revenue generation.
Speaking during an interview in Kenya with Julians Amboko, a financial journalist with Nation Media Group, Dr. Oyedele emphasised that “Africa must adopt a supportive rather than extractive approach toward the informal sector if it is to unlock inclusive growth and prosperity.”
According to him, policy priorities should include:
Reducing withholding tax rates to enable businesses to reinvest and expand; Eliminating the minimum tax, which often compels payment from capital; and Exempting low-income earners and micro businesses, as “no nation can become rich by taxing poverty.”
Dr. Oyedele noted that the “economy of collection” extends beyond administrative efficiency, highlighting the importance of considering the opportunity cost to taxpayers.
“If we tax the seed in the hands of taxpayers today, we may boost short-term revenue, but we undermine long-term wealth creation and lose the opportunity to tax the fruits tomorrow,” he said.
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