- Nigerian government plans to increase Value-Added Tax (VAT) to 10% by 2025 and 12.5% by 2026
- An executive bill has been sent to the National Assembly for approval
- The bill also proposes a reduction in Corporate Income Tax (CIT) to 27.5% by 2025 and 25% by 2026
- Companies with less than N20 million turnover are exempt from paying CIT
- International Monetary Fund (IMF) has advised Nigeria to raise VAT to 15%
- Companies with an effective tax rate less than 15% will have to pay additional tax to make it 15%
- Federal government is concerned about low VAT performance in Nigeria compared to other West African countries
- VAT collected in Q2 of 2024 was N1.56 trillion, showing a growth rate of 9.11% from Q1 2024
Source: businesspost.ng
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
