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The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has reacted to the ongoing controversy trailing his recent suggestion that the Federal Government could train area boys for tax collection.
Speaking in an interview with Channels Television on January 17, 2024, Oyedele disclosed that the government could train area boys to become tax collection agents and pay them decent salaries for them to turn a new leaf.
The suggestion triggered a public outcry as many Nigerians condemned the idea while calling for the head of the tax expert.
However, Oyedele has provided some contexts to the discourse to clarify that the Federal Government doesn't plan to recruit area boys to collect taxes as being speculated.
In a post on his X (formerly Twitter) account on Saturday, January 27, 2024, the former PwC executive stated that states and local governments are already using the so-called area boys to collect taxes and levies in their domain.
Therefore, he said, the Federal Government's plan is to get the buy-in of those area boys, who are already engaged by state and local governments, adding that a person can't be recruited for the job they are already doing.
He stressed that the issue he raised during the interview borders on finding common ground with those involved in tax collection who are not officially engaged in the system.
"You cannot recruit a person to do the job they are already doing, whether they are legally engaged or otherwise.
"We have over 40 taxes and levies which States and Local Governments are authorised by law to collect across Nigeria including road taxes on trucks, buses and bicycles, wheelbarrow, kiosks and shops levies.
"In many cases, area boys are engaged to collect these taxes which they often do through crude, unorthodox means and harassment.
"Painfully, these taxes yield very little revenue to the government despite the huge burden they place on small businesses, artisans and transporters.
"We propose to eliminate many of these taxes and harmonise a few of them that may be appropriate and devise a civil means of collection using mobile phones, his tweet partly read.
Oyedele stressed that the issue he raised during the interview has been sensationalised and twisted out of context.
“I did not mention any word like recruit or employ. My thought on it beyond the legal aspect was to consider the social dimension and find a practical solution that has a high chance of success.
“The idea is that the government could train the collectors to behave in a civilised manner and pay them decently so that it is comparable to what they currently make.
“Their new role will be to drive and monitor compliance. The payers will pay less and be treated with dignity. Government will earn more, and society will benefit – a win-win outcome for everyone,” he added.