As Tinubu signs tax reform bills, VAT remains 7.5%, CIT 30%

As Tinubu signs tax reform bills, VAT remains 7.5%, CIT 30%

President Bola Ahmed Tinubu on Thursday signed the four tax reform bills recently passed by the National Assembly, retaining Value Added Tax (VAT) at 7.5% and the Corporate Income Tax (CIT) at 30% without any increment.

The bills are the Nigeria Tax Bill (Ease of Doing Business), which aims to consolidate Nigeria’s fragmented tax laws into a harmonised statute; and Nigeria Tax Administration Bill, which will establish a uniform legal and operational framework for tax administration across federal, state, and local governments.

Others are the Nigeria Revenue Service (Establishment) Bill, which repeals the current Federal Inland Revenue Service Act and creates a more autonomous and performance-driven national revenue agency— the Nigeria Revenue Service (NRS); and the Joint Revenue Board (Establishment) Bill, which provides for a formal governance structure to facilitate cooperation between revenue authorities at all levels of government.

There were concerns over the potential of the Bills in further increasing taxpayers’ burden even as the planned increase in value added tax from the present 7.5 per cent also generated concerns.

At the signing ceremony at the State House, President Tinubu said that the occasion presented a new lease of life to every Nigerian and future generation and described the laws as pivotal to the success of the administration’s reforms and the country’s prosperity.

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“What we did a few minutes ago is the way forward for our country’s prosperity. Leadership must help people take off, lead the way, and navigate every turn and twist. We must help them reach their destination. That is what we are doing.

“We are in transit; we have changed the roads, we have changed some of the misgivings, we have opened the doors to a new economy, business opportunities. We have shown the world that Nigeria is ready and open for business,” the president stated.

President Tinubu commended the leaders and members of the National Assembly for passing the bills despite initial misunderstandings.

“It was initially difficult, but not all roads will be easy in nation-building. What you have provided is leadership and courage in the face of mounting disputes. Nowhere in the world would tax reforms be easy,” the president said.

Implementation begins in January – Adedeji  

Addressing State House correspondents shortly after the president signed the bills, Chairman of the Nigeria Revenue Service, Zach Adedeji, disclosed that the implementation of the newly signed four tax fiscal reform laws will commence by January 1st, 2026.

According to him, the modalities will be put in place ahead of the implementation.

Adedeji explained that the six-month period between the enactment of the new fiscal laws is designed to give ample time to those saddled with the implementation to carefully prepare and ensure that all Nigerians are adequately sensitised.

According to Adedeji, the Federal Inland Revenue Service, FIRS by the signing of the bills into Law is now the Nigeria Revenue Service, explaining that the new law now defines the NRS’s expanded mandate, including non-tax revenue collection, and lays out transparency, accountability, and efficiency mechanisms.

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“The Nigeria Revenue Service (Establishment) Bill, the third bill, repeals the current Federal Inland Revenue Service Act and creates a more autonomous and performance-driven National Revenue Agency.

“Two hours ago, before we were FIRS, now we are Nigeria Revenue Service with expanded scope to focus on tax collection and with match efficiency.”

The Chairman, Presidential Committee on Tax Reforms, Taiwo Oyedele, said President Tinubu had directed proper implementation of the laws while ensuring collective participation of all stakeholders.

“We are prepared. It is not something we can do alone, even from the government side. It’s something we have to be collective about.”

Oyedele added that the committee will now include the private sector, public sector, civil society, professional bodies as well as international partners.

“The private sector, public sector, civil society, professional bodies, etc? Tax consultants, everyone, including our international partners, who mean well will work for Nigeria.”

During an interview on Channels Television on Thursday, Oyedele said households earning N250,000 or less per month will be exempted from paying tax under the new fiscal laws.

Oyedele explained that the new laws are aimed at driving economic growth and easing the financial burden on low-income earners.

He also said that the reforms are structured to protect struggling families, encourage productivity, and reduce the stress on middle-income earners, while making the wealthy contribute a bit more.

He said the intention is not to increase taxes but to make the system more efficient, fair, and targeted.

“This tax law will not give you cash in your pocket, but at least it won’t take your cash away if you are poor,” he said.

He added that no Nigerian who earns below N250,000 monthly would be required to pay taxes because “they don’t even have enough” to meet basic needs.

As Tinubu signs tax reform bills, VAT remains 7.5%, CIT 30%

Daily Trust