The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has revealed that his committee will be proposing the removal of Value Added Tax on some basic food, educational and healthcare items.
Oyedele said this on Wednesday via his X handle (formerly Twitter) as he clarified comments earlier made at a policy exposure and impact assessment session organised by the committee.
Denying claims that his committee is proposing a rate hike, Oyedele said that his committee had instead proposed, “Full input VAT credit for businesses to reduce their cost of doing business and minimise the strain on their cash flows. Remove VAT on an expanded list of basic food, educational and healthcare items to protect the poor. Harmonise all consumption taxes into one (VAT only) and adjust the revenue-sharing formula in favour of states to address a multiplicity of taxes. “Removal of VAT on the export of service and intellectual property to promote non-oil exports, increase the threshold for VAT exemption for small businesses and enhance the VAT refund process to reduce the strain on working capital of businesses. Introduce VAT fiscalisation and electronic invoicing to curb evasion which makes honest businesses uncompetitive.”
