Trump’s External Revenue Policy Could Complicate Global Tax System— Oyedele

The Chairman, the 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 further complicate the global tax system.

Oyedele said this via his X handle on Monday night, following the inauguration of Trump.

Oyedele has been leading the committee working on tax reforms.

According to him, Trump’s external revenue service could disrupt global trade.

During his inauguration, Trump expressed 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. ”

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Reacting to his speech Oyedele said, “The 47th President of the United States, Donald J. Trump announced plans to establish an 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. ”

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.

However, the introduction of the bills has sparked debates over equity, implementation, and economic implications.

Most especially, the bills have generated heated arguments in the Northern parts of the country.

However, in a twist, the Nigerian Governor’s Forum last Thursday endorsed the bill, pushing for 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.

Source: Channels TV