Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, announced that the committee is proposing a law to increase the Value Added Tax (VAT) from the current 7.5% to 10%.
The proposal will be submitted to the National Assembly for consideration.
Speaking during an interview on Channels TV’s Politics Today, Oyedele emphasized that the committee is also working on consolidating multiple taxes in Nigeria to reduce the overall tax burden. “We have significant issues with our tax revenue and the entire fiscal system is in a state of crisis,” Oyedele said.
He outlined three main mandates for the committee: improving governance and financial coordination, transforming the revenue profile, and managing government assets.
The proposed law suggests increasing the VAT rate to 10% starting in 2025, with further increases planned in subsequent years. The timeline for passing the law remains uncertain.
In parallel, the committee plans to reduce personal income tax for individuals earning N1.5 million per month or less. Corporate income tax rates are also set to decrease by 30% over the next two years, dropping from the current rate to 25%.
Additionally, the committee aims to consolidate multiple taxes into a single one. The initial consolidated rate will be 4%, with plans to reduce it to 2% over the next few years.
