The Nigerian government has just disclosed plans to raise the Value Added Tax (VAT) rate from 7.5% to 10% starting in 2025. Taiwo Oyedele, the chairperson of the Presidential Fiscal Policy and Tax Reforms Committee, made this known during his interview on Channels TV’s Politics on Tuesday, September 3rd.
The committee has already drafted a bill for discussion at the National Assembly soon, aiming at consolidating different taxes into one single payment, which will result in an overall tax decrease for many Nigerians. The bill proposes:
- – An increase of VAT from 7.5% to 10% by 2025
- – A simultaneous decrease of personal income tax payable by individuals who earn N1.5 million or less monthly
- – A 30% reduction in corporate income tax over two years, down to 25%
Oyedele noted that the new law would aim at making the tax system easier, hence lessening the burden on people and enterprises, though it needs clearance from both houses for its implementation purposes.
