Cut corporate tax to 7.5%, NACCIMA urges Tinubu
The National Association of Chambers of Commerce, Industry, Mines, and Agriculture has called on President Bola Tinubu’s administration to take decisive steps toward comprehensive tax reform, recommending a reduction in corporate tax rates to 19% and capping Value Added Tax at 7.5%.
In a statement signed by NACCIMA’s National President, Dele Kelvin Oye, the association argued that such changes would stimulate economic growth and improve government revenue generation.
Currently, tax reform bills before the National Assembly propose a gradual increase in VAT rates, beginning with 10% in 2025, progressing to 12.5% from 2026 to 2029, and reaching 15% from 2030 onward.
“We believe corporate taxes should be further reduced to 19%, and VAT should be pegged at 7.5%,” Oye stated. “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.”
Oye also highlighted the ongoing disconnect between federal and state governments, noting that their public disagreements over revenue sharing have largely played out in the media. According to him, these exchanges often ignore the core interests of taxpayers and the general public.
“The current media exchanges between federal and state governments, largely seen in newspapers and press releases, further highlight this disconnect,” Oye said. “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.”
In addition to tax reforms, Oye stressed the need for targeted reforms in key sectors such as telecommunications, which contribute significantly to government revenues. He argued that reforming these sectors would unlock further growth and increase tax revenues.
NACCIMA also called for greater private sector involvement in the tax reform process, particularly in sectors like aviation, telecommunications, manufacturing, and Free Trade Zones. The association criticized the current approach of using committees to “lecture taxpayers” without achieving meaningful outcomes.
“Significant taxpayers, like the telecommunications sector, which require reforms to increase tax revenues, must not be ignored,” NACCIMA’s statement said. “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.”
The proposed 2024 Tax Reform Bills stem from the recommendations of the Presidential Committee on Tax Reform, chaired by fiscal policy expert Mr. Taiwo Oyedele. These bills include four separate legislative proposals: the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service Establishment Bill (NRSEB), and the Joint Revenue Board Establishment Bill.
