The Presidential Fiscal Policy and Tax Reforms Committee, led by Taiwo Oyedele, has announced a proposal to increase the Value Added Tax (VAT) from 7.5% to 10%. This move, according to him, is aimed at boosting government revenue, as a bill is set to be presented to the National Assembly soon.
During an exclusive interview on Channels TV’s Politics Today, Oyedele highlighted the urgency of addressing Nigeria’s fiscal challenges. “Our tax system is in a state of crisis,” he remarked, emphasizing the need for sweeping reforms to stabilize the economy.
The proposed tax law is not just about raising VAT; it also seeks to simplify Nigeria’s complex tax structure. Oyedele revealed that the committee is working to consolidate multiple taxes into a single, more manageable system, which could lead to a reduction in overall tax burdens for both individuals and businesses.
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“The law we’re drafting will also see a reduction in personal income tax for those earning N1.5 million or less per month, as well as a decrease in the corporate tax rate from 30% to 25% over the next two years,” Oyedele explained. This dual approach of increasing VAT while lowering other taxes is designed to stimulate economic growth while ensuring the government can fund critical infrastructure and services.
