Amid Hardship, Tinubu government on Tuesday, September 3, announced its plan to increase Value Added Tax (VAT) from 7.5% to 10%.
Taiwo Oyedele the Chairman Presidential Fiscal Policy and Tax Reforms Committee gave a hint on this while speaking during an interview on Channels TV’s Politics.
According to Oyedele, the committee is proposing a law to the National Assembly to increase VAT with a view to consolidate multiple taxes in Nigeria to ensure tax reduction.
Also noting that a new tax law has been drafted by the committee, Oyedele said the draft of the proposed document would be submitted to the National Assembly soon.
His words, “The law we are proposing to the National Assembly has the rate of 7.5% moving to 10% from 2025. We don’t 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,” he said.
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