The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has revealed that traders in the pure water (sachet water) business in Nigeria are subject to paying at least six to seven taxes daily. During a television interview on TVC, Oyedele highlighted that these daily levies, often called ‘stickers,’ are imposed by local governments and other agencies.
Oyedele emphasized that this heavy tax burden on informal sector traders, artisans, and small business owners contributes to the early closure of these businesses. He mentioned that the committee is advocating to the National Assembly for the suspension of these levies to foster economic growth.
He noted that the market trader association informed them that those selling pure water pay 6 to 7 taxes every day.
Oyedele further stated that the committee proposes that 95% of the informal sector should be exempted from all forms of tax payment. This move is expected to encourage economic growth and development, as their analysis shows that only 5% of the informal sector can afford these taxes.
Oyedele emphasized the significant contribution of the informal sector to Nigeria’s GDP and employment rate, stating that these businesses should be supported through fiscal incentives to ensure their survival and growth.
Oyedele, also noted that the committee is making recommendations to state and local governments to suspend nuisance taxes that do not add value.
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