Tax Reform Bills: ACF Recommends Retention Of 7.5% VAT
The Arewa Consultative Forum (ACF) has recommended the retention of the 7.5% rate of Value added Tax (VAT) in the Tax Reforms Bills. ACF’s submission was contained in a comprehensive set of observations and recommendations to the National Assembly on the Executive Tax Reforms Bills, meant to achieve a sweeping overhaul of Nigeria’s tax laws. The group’s actions were the outcome of a special purpose committee of experts set up by its board of trustees which studied the bills for appropriate recommendations In the report signed by its National Publicity Secretary Tukur Muhammad-Baba, ACF said the retention of the 7.5% rate of Value added Tax (VAT) is in line with the reality of current economic challenges facing citizens and businesses. It also called for Improving the efficiency of (VAT) collection, improvements to revenue collection through the formalisation of the informal sectors and the use of digital technologies, as well as the vigorous expansion of Nigeria’s tax base through encouraging private sector investments. The Forum further recommended that VAT on agricultural equipment should be expunged; and the words “supply and supplies” in Chapter 6 (VAT), Part 1, Sections 143, 144, 145, and 147 of the Tax Administration Bill should be changed to “consumption or consumptions”. Also, the Forum wants the term “derivation” to be clearly and unambiguously defined, while its distribution should be based on consensus reached through consultation with states and local governments as well as the advice of the Revenue Mobilisation and Fiscal Commission (RMFC).
Admin | 2025-02-24 22:40:27