Group Seeks Alternatives to Strengthen Tax Policy

Abuja: The Regional Working Group on Tax Policy Alternatives (RWOGTAPA) has underscored the need for policy alternatives to bolster more meaningful growth in the tax regime. The group, at a two-day regional meeting in Abuja, highlighted that the meeting had become imperative as the tax systems in Ghana and Nigeria face similar challenges. The event was organised by Friedrich Ebert Stiftung (FES) and Public Services International (PSI), both Non-Governmental Organisations (NGOs). According to News Agency of Nigeria, the FES Resident Representative in Nigeria, Lennart Oestergaard, emphasized that countries in Africa struggle with Domestic Resource Mobilisation (DRM) to achieve sustainable development goals. He remarked on the necessity of investment in infrastructure and public services amid ongoing challenges. The meeting aimed to raise awareness of the global tax process and its implications for African taxation regimes, focusing on strengthening individual capacity and discussing the impact of new legislati on. Mr. Daniel Oberko, Regional Secretary of PSI for the Africa and Arab region, acknowledged FES's role in influencing governmental positions on tax issues and highlighted the necessity of alternatives to the current tax regime. He noted the significant role of Nigeria's trade unions and civil society organisations in addressing financial flows. Oberko pointed out that RWOGTAPA will play a critical role in tackling interconnected issues like tax, austerity, and trade. Representing the Federal Ministry of Finance Tax Policy Department, Mr. Dayi Damulak revealed that recent tax reforms have resulted in a new tax law, set to take effect on January 1, 2026. This law will exempt certain categories of workers and salary earners from tax payments, aiming to align the Nigerian tax regime with the interests of taxpayers. Similarly, Mr. Charles Thompson Jnr, Principal Revenue Officer at the Ghana Revenue Authority (GRA), shared insights on revenue collection challenges and successes in Ghana. He stressed the import ance of government interventions and enforcement mechanisms in achieving revenue targets and suggested further exchanges between the two countries to learn from each other's experiences. The event's highpoint was a virtual presentation by Emmanuel Eze, Senior Advisor on International Taxation for the African Union, discussing the 'Inclusive Framework on the Minimum Tax Rate and its Implications on Nigeria and Ghana', alongside reflections on the newly adopted Nigeria Tax Act.