Chairman Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, says the committee is proposing a law to the National Assembly to increase valued added tax from the current 7.5% to 10%.
Oyedele, who stated this during an interview on a television programme yesterday, also said his committee was working to consolidate multiple taxes in Nigeria to ensure tax reduction.
He added the tax law the committee drafted would be submitted to the National Assembly.
According to him, We have significant issues in our tax revenue. We have issues of revenue generally, which means tax and non-tax. You can describe the whole fiscal system in a state that is in crisis.
“The law we are proposing to the National Assembly has the rate of 7.5% moving to 10% from 2025. We dont know how soon they will be able to pass the law. Then subsequent increases are also indicated in terms of the year they will kick-in. While we are doing that, we have a corresponding reduction in personal income tax”.
“Anybody that is earning about N1.5 million a month or less, they will see their personal income tax come down. Companies will have income tax rate come down by 30% over the next two years to 25%. That is a significant reduction.
Other taxes they pay are quite many: IT levy, education tax, etc. All these we are consolidating into a single one. They will pay 4% initially. That will go down to 2& in the next few years, he further stated.
