Global Daily Tax News, Nigerian Tax Reform Panel Recommends VAT Hike, CIT Cut, (Jun 7, 2024)

Nigeria's Presidential Committee on Tax Policy and Fiscal Reforms has recently released a series of recommendations on boosting the nation's tax collections.

The Committee, which was appointed by the country's President to advise on reforms, said the value-added tax rate should be raised, to fund value-added tax exemptions for food, education, and healthcare. Further, it has recommended increasing the amount of value-added tax revenue that is apportioned to non-federal authorities to 90 percent, while reining in additional consumption-based levies and centralizing administration.

Chairman of the Committee, Taiwo Oyedele, said the value-added tax rate should rise from 7.5 percent to 10 percent, while the corporate tax rate should be lowered by five percentage points. These changes should be phased in over two years, he recommended.

The Committee has also proposed that small businesses should be exempted from various taxes, the value-added tax registration should rise, and enforcement efforts should be focused on high-income taxpayers.