FG moves to scrap Over 50 taxes

The Federal Government has unveiled a comprehensive tax reform agenda aimed at simplifying Nigeria’s tax system, eliminating over 50 redundant taxes, and ensuring fairness for individuals and businesses.

Speaking at a briefing in Asaba, Delta State, the Director-General of the National Orientation Agency (NOA), Mallam Lanre Issa-Onilu, represented by Mrs. Rebecca Nasamu, stressed the need for equity and justice in taxation.

“The Nigeria Tax Bill is where all major taxes imposed on individuals and companies are clearly stated, as well as the rates. The bill amalgamates all existing tax laws, and when passed, it will repeal 11 separate tax-related laws,” Issa-Onilu explained.

“Those earning very little will pay little or no taxes, helping them manage their finances better.”

The reform introduces a major shift in Value Added Tax (VAT) calculations, basing it on consumption locations rather than the headquarters of companies.

Digital systems are also being developed to make tax payments more efficient and transparent.

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At the 2024 National Tax Conference in Abuja, civil society organisations (CSOs) such as CISLAC, ActionAid, and Oxfam Nigeria, joined government agencies to advocate for equity-focused fiscal policies.

They raised concerns about the timing of a VAT increase amidst inflation exceeding 30% and urged the government to review the list of VAT exemptions to include essential items like electricity, cooking gas, and basic food products.

“The proposed reforms must align fiscal policies with equity and economic stabilisation,” the CSOs stated in a communique.

They also recommended that “big businesses and high-net-worth individuals pay their fair share of taxes,” while cautioning against policies that would erode the purchasing power of low-income earners.

The government’s proposed measures aim to harmonise tax laws, digitise tax administration, and provide relief for vulnerable populations.

“By supporting this effort, we can create a tax system that works for all and funds development projects that will improve our nation,” Issa-Onilu concluded.