NACCIMA Advocates For Corporate Tax Cuts And Stable VAT

The National Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) urges President Bola Tinubu’s administration to implement tax reforms to boost Nigeria’s economy. The organization calls for corporate tax reductions to 19% and a cap on Value Added Tax (VAT) at 7.5%.

According to Dele Kelvin Oye, NACCIMA’s National President, cutting corporate tax rates while keeping VAT stable will encourage investment, spur economic activity, and increase government revenue. He stresses the need for safeguards, ensuring that taxpayers do not pay less than their contributions from the previous tax year to maintain steady revenue for the government.

Oye raises concerns about the recurring clashes between federal and state governments over revenue sharing, which often unfold publicly. He criticizes these disputes for ignoring taxpayer interests and calls for improved collaboration and dialogue to resolve these issues effectively.

NACCIMA highlights the need for targeted reforms in key industries like telecommunications, aviation, and manufacturing. The association advocates for a collaborative approach between the private sector and government stakeholders to create a balanced and fair tax system. Oye criticizes current committee efforts, which he says fail to produce meaningful outcomes, and suggests structured engagements that prioritize productive dialogue.

The proposed 2024 Tax Reform Bills aim to reshape Nigeria’s fiscal framework. They include the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill. These reforms align with broader goals to enhance tax efficiency and ensure long-term economic stability.

NACCIMA emphasizes that involving the private sector in these reforms is critical to building a tax system that supports sustainable growth and benefits all stakeholders.