Govt Urged To Reduce Corporate Tax To 19%
The Federal Government has been urged to consider reducing corporate tax rates to 19%.
The National Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), which made this call in a signed by its National President, Dele Oye, also advocates for capping Value Added Tax (VAT) at 7.5%.
The group argued that such changes would stimulate economic growth and improve the government revenue drive towards ongoing comprehensive tax reform.
The Tax Reform Bills before the National Assembly proposes a gradual increase in VAT rates, starting with 10% this 2025, progressing to 12.5% from 2026 to 2029, and reaching 15% from 2030 onward.
The proposed 2024 Tax Reform Bills, as recommended by the Taiwo Oyedele-led Presidential Committee on Tax Reform, comprise four separate legislative proposals. These include: the Nigeria Tax Bill; the Nigeria Tax Administration Bill; the Nigeria Revenue Service Establishment Bill (NRSEB); and the Joint Revenue Board Establishment Bill.
NACCIMA stated: “We believe corporate taxes should be further reduced to 19%, and VAT should be pegged at 7.5%.
“This will grow the economy and lead to higher tax revenues for the government. However, to protect government revenues, each taxpayer should not pay less than they did the previous year.”
However, Oye stressed the need for targeted reforms in key sectors such as telecommunications, which contribute significantly to the government’s revenues, to unlock further growth and increase tax revenues.
He further called for greater private sector involvement in the tax reform process, particularly in sectors like aviation, telecommunications, manufacturing, and Free Trade Zone, while criticising the current approach of using committees to “lecture taxpayers” without achieving meaningful outcomes.
He stated: “Significant taxpayers, like the telecommunications sector, which require reforms to increase tax revenues, must not be ignored.
“There must be genuine dialogue, with real concessions made by all parties. The private sector, including aviation, telecommunications, manufacturers, and Free Trade Zones, should be directly engaged in written communication,” he stated
