Presidential Committee Advocates Utilizing USSD and Alternative Methods for Tax Payments

Presidential Committee Advocates Utilizing USSD and Alternative Methods for Tax Payments 

The Head of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has revealed that the committee is advocating for the adoption of Unstructured Supplementary Service Data (USSD) and other digital platforms for tax and levy payments across all levels of government in Nigeria.

Oyedele shared this information on Wednesday while providing updates on the committee's ongoing activities. As per his statement, one of the committee's recommendations to the government involves the elimination of numerous existing taxes that have become burdensome, streamlining justifiable ones, and digitizing the collection process using diverse channels, including USSD. The objective is to enhance efficiency, minimize financial leakages, and foster accountability.

USSD, a Global System for Mobile Communications (GSM) protocol commonly used for text messaging, is currently employed by banks for financial services. It allows users to engage directly from their mobile phones by selecting options from various menus.

Taxes at State and Local Levels

Highlighting the current scenario of taxation, Oyedele mentioned that there are currently more than 60 taxes, levies, and charges across the three tiers of government. States and local governments administer 46 of these, encompassing road taxes, motor park levies, fees for trucks, canoes, wheelbarrows, carts, and more.

He further pointed out the existence of unauthorized taxes, disproportionately affecting small businesses, including petty traders, hawkers, artisans, truckers, cart pushers, okada riders, and other transporters. The associated costs are often transferred to consumers, particularly those with lower incomes.

"We propose to repeal many of these burdensome taxes, harmonize the few that are justifiable, and digitize the collection process with multiple channels, including USSD, to drive efficiency, reduce leakages, and promote accountability," stated Oyedele.

Civilized Approach to Tax Collection

Acknowledging the social implications of the proposed reforms, Oyedele mentioned two choices: recruiting and training new personnel for compliance or providing training to existing collectors to adopt a more civil approach. He emphasized that the latter offers a sustainable solution, avoiding potential social crises and providing relief to small businesses.

"Our reforms stand a better chance of success when we find a win-win outcome for all stakeholders than those which seek to alienate others," he added.

Oyedele concluded by expressing the committee's openness to criticism and its active pursuit of feedback and ideas from the public.