The National Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has called on President Bola Tinubu’s administration to take decisive steps toward tax reform, including reducing corporate taxes to 19% and pegging Value Added Tax (VAT) at 7.5%.
This is contained in a statement signed by the association’s National President, Dele Kelvin Oye.
The current Tax Reforms bills before the National Assembly propose a progressive increase in VAT rates from 10% in 2025 to 12.5% (2026–2029) and 15% from 2030 onward.
According to NACCIMA, the reduction of corporate and value-added taxes will foster economic growth and enhance government revenue.
“We believe corporate taxes should be further reduced to 19% and VAT pegged at 7.5%. We believe this will grow the economy and result in higher tax revenues for the government. As a caveat to protect government revenues, each tax payer must not pay less than the preceding tax year.”
Oye lamented the ongoing disconnect between federal and state governments, which has manifested through public disagreements over revenue sharing. He noted that these engagements often played out in the media, overlooking the fundamental interests of taxpayers and the public.
“The current media engagement between federal and state governments in newspaper and press releases only further confirms the disconnect described above,” Oye remarked. “The beneficiary parties receiving taxpayer funds engage each other on how to secure a larger portion of taxpayer funds without consideration for the public or taxpayer interest.”
Other sectors need reforms too
Oye emphasized that sectors like telecommunications, which contribute significantly to government revenues, require targeted reforms to unlock further growth and revenue potential.
The statement also called for greater inclusion of the private sector in tax reform discussions with stakeholders in areas such as aviation, telecommunications, manufacturers, and operators in Free Trade Zones. Oye criticized the existing approach of using committees that “lecture taxpayers” without yielding positive outcomes.
According to NACCIMA, “Significant tax payers like the telecommunications sector who require reforms; which will result in increased tax revenues should not be ignored. There must be real dialogue with genuine concessions to be made by all parties. The private sector (Aviation, Telecommunications, manufacturers, Free Trade Zones, and other stakeholders must be engaged) in written communication. Committees that come to lecture tax payers are not giving positive outcomes. For better coordination, the outcome of these engagements can be forwarded to the National Assembly through the office of the ATTORNEY GENERAL as directed by Mr President.”
What you should know
- The proposed 2024 Tax Reform Bills stem from the recommendations of the Presidential Committee on Tax Reform, chaired by the renowned fiscal policy expert Mr. Taiwo Oyedele.
- The reform bills comprise four separate bills: the Nigeria Tax Bill (NTB), the Nigeria Tax Administration Bill (NTAB), the Nigeria Revenue Service Establishment Bill (NRSEB), and the Joint Revenue Board Establishment Bill (JRBEB).
