By Stanley Onyeka, Lagos
The National Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), has sought for the reduction of corporate tax rates to 19%, and capping Value Added Tax (VAT) at 7.5%.
A statement signed by NACCIMA’s National President, Dele Oye, the Association 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.
However, Mr Oye said: “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.”
The parties benefiting from taxpayer funds engage in discussions on how to secure a larger portion of the funds, with little regard for the taxpayer or the public’s interests.
Mr. Oye argued that the ongoing disconnect between federal and state governments, and their public disagreements over revenue sharing have largely played out in the media.
These exchanges, he insisted, often ignored the core interests of taxpayers and the general public.
He continued: “The current media exchanges between federal and state governments, largely seen in newspapers and press releases, further highlight this disconnect.
“The parties benefiting from taxpayer funds engage in discussions on how to secure a larger portion of the funds, with little regard for the taxpayer or the public’s interests.”
Aside from the tax reforms, NACCIMA also 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.
The Association 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.
The statement reads further “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.
“Committees that simply lecture taxpayers are not delivering positive results. For better coordination, the outcomes of these engagements should be submitted to the National Assembly through the office of the Attorney-General, as directed by Mr. President.”
