By Nnamdi Ojiego

The Nigeria Tax Bill entitled, ‘An Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks Relating to Taxation and Enact the Nigeria Tax Act to Provide for Taxation of Income, Transactions and Instruments, and for Related Matters’, is among the three bills transmitted to the National Assembly by President Bola Tinubu on October 3, 2024.

Since the transmission of the bills, they have generated significant controversies and protests among Nigerians with some governors and traditional rulers of northern extraction kicking against them. Below are 20 key provisions of one of the tax bills.

•Increment in VAT: Value Added Tax (VAT) will increase from 7.5% to 10% by 2025, 12.5% from 2026 to 2029, and 15% from 2030 onwards.

•VAT Exemptions: Essential items like food, education, and healthcare will be exempt from VAT.

•Tax Relief for Low-Income Earners: Individuals earning ¦ 800,000 or less annually will be exempt from Personal Income Tax (PIT).

•Progressive PIT System: A more progressive PIT system will be introduced, with reduced rates for low-income earners.

•5% Excise Tax on Lottery and Gaming Income Section 62 and Schedule 10 of the law propose 5 percent excise duty on revenue of lottery and gaming trade or business.

•5% Telecoms Tax: The bill proposes a five percent excise duty on telecommunications services, including post-paid and prepaid services regulated by the Nigerian Communications Commission (NCC).

•Increased CIT Exemption Threshold: The threshold for Companies Income Tax (CIT) exemption will be raised from ¦ 25 million to ¦ 50 million in turnover.

•Streamlined Tax Processes: The Nigeria Tax Administration Bill aims to create a centralized and user-friendly process for tax registration, filing, and dispute resolution.




https://www.vanguardngr.com/2025/03/you-will-pay-15-vat-20-key-provisions-of-the-nigeria-tax-bill-2024/