The National Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) has urged President Bola Tinubu’s administration to adopt significant tax reforms aimed at driving economic growth and increasing government revenue. The association, through its National President, Dele Kelvin Oye, advocated for a reduction in corporate taxes to 19% and the value-added tax (VAT) to 7.5%.
NACCIMA’s recommendations come in response to the Tax Reforms legislation currently before the National Assembly, which proposes a gradual VAT increase from 10% in 2025 to 15% by 2030. However, NACCIMA believes that reducing these tax rates initially will stimulate the economy, leading to higher overall tax revenues.
In a statement, Oye highlighted the need for consistency in taxpayers’ contributions:
“We believe corporate taxes should be further reduced to 19% and VAT pegged at 7.5%. This will grow the economy and result in higher tax revenues for the government. As a caveat to protect government revenues, each taxpayer must not pay less than the preceding tax year.”
Oye criticized the ongoing public disputes between federal and state governments over revenue distribution, describing them as detrimental to public interest. He stressed that these disagreements should prioritize taxpayers’ concerns and focus on fostering collaboration for national development.
Call for Private Sector Involvement
NACCIMA emphasized the importance of engaging private sector stakeholders, including those in telecommunications, aviation, manufacturing, and Free Trade Zones, in tax reform discussions. The association criticized the current committee-led approach, which it claimed lacked tangible outcomes and failed to address taxpayers’ genuine concerns.
“Committees that come to lecture taxpayers are not giving positive outcomes. Significant taxpayers like the telecommunications sector, which require reforms to increase tax revenues, should not be ignored. Real dialogue with genuine concessions is necessary,” the statement added.
The association also proposed that the outcomes of these engagements be communicated to the National Assembly through the Attorney General’s office to ensure proper legislative action.
Background on Tax Reform Bills
NACCIMA’s recommendations align with earlier proposals from the Presidential Committee on Tax Reform, led by fiscal policy expert Taiwo Oyedele. These proposals are encapsulated in the 2024 Tax Reform Bills, which include:
- Nigeria Tax Bill (NTB)
- Nigeria Tax Administration Bill (NTAB)
- Nigeria Revenue Service Establishment Bill (NRSEB)
- Joint Revenue Board Establishment Bill (JRBEB)
The Tax Reform Bills aim to streamline tax collection, foster compliance, and ensure equitable revenue distribution between federal and state governments.
NACCIMA call for tax reforms underscores the private sector’s crucial role in shaping policies that stimulate economic growth. By reducing tax rates and fostering collaboration among stakeholders, Nigeria can create a more robust and inclusive economy while ensuring sustainable government revenue streams.
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