The Presidential Fiscal Policy and Tax Reforms Committee, chaired by Taiwo Oyedele, has announced plans to propose a law to the National Assembly that would increase the Value Added Tax (VAT) rate from the current 7.5 per cent to 10 per cent.
Oyedele revealed that the committee was also working on consolidating the multiple taxes in Nigeria to streamline the tax system and ultimately reduce the tax burden on citizens and businesses.
According to Oyedele, the draft of the proposed tax law will be submitted to the National Assembly soon.
He explained, “The law we are proposing to the National Assembly includes an increase in the VAT rate from 7.5 percent to 10 percent, starting from 2025. However, we are uncertain about how quickly the law will be passed. The proposal also outlines subsequent increases and the specific years they will take effect.”
Speaking on Channels TV’s Politics Today on Monday night monitored by our correspondent, Oyedele highlighted the significant challenges facing Nigeria’s tax revenue system. “We are facing major issues in our revenue system, both tax and non-tax. The entire fiscal system is in a state of crisis,” he said.
