President Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Dele Oye, an arm of the organized private sector OPS, has asked for a downward review of corporate taxes to 19 per cent and Value-Added Tax (VAT) to 7.5 per cent. He said the reduction of corporate and value-added taxes would foster economic growth and boost government revenue. Oye made the suggestion in a statement titled “Options for Economic Reform and Consequences for The Medium-Term Expenditure Framework for 2025-2027” released in Lagos at the weekend.
“We believe corporate taxes should be further reduced to 19% and VAT pegged at 7.5%. We believe this will grow the economy and result in higher tax revenues for the government. As a caveat to protect government revenues, each tax payer must not pay less than the preceding tax year,” he said. Oye said the current disconnect between federal and state governments had manifested in public disagreements over revenue sharing. He said these engagements often played out in the media, overlooking the fundamental interests of taxpayers and the public. “The current media engagement between federal and state governments in newspaper and press releases only further confirms the disconnect described above,
“The beneficiary parties receiving taxpayer funds engage each other on how to secure a larger portion of taxpayer funds without consideration for the public or taxpayer interest.” Oye also called for more involvement of the private sector in tax reform discussions. He said sectors like telecommunications which contributed more to government revenues required targeted reforms to unlock further growth and revenue potential. “Significant tax payers like the telecommunications sector who require reforms; which will result in increased tax revenues should not be ignored.
“There must be real dialogue with genuine concessions to be made by all parties.
“The private sector (Aviation, Telecommunications, manufacturers, Free Trade Zones, and other stakeholders must be engaged in written communication. Committees that come to lecture tax payers are not giving positive outcomes. For better coordination, the outcome of these engagements can be forwarded to the National Assembly through the office of the ATTORNEY GENERAL as directed by Mr President,” he said.
OPS calls for reduction of corporate taxes to 19%, VAT 7.5%
