FG begins six-week review of 2025 tax laws

The Nigerian government has commenced a six-week review of the country's tax laws enacted in 2025 to tackle issues that have surfaced since their implementation in January. The assessment will examine areas such as Value Added Tax thresholds, withholding tax, capital gains treatment, and multiple taxation, with expected recommendations to be included in the Finance Bill 2027.

Finance Minister Taiwo Oyedele, who chairs the Presidential Fiscal Policy and Tax Reforms Committee, unveiled the review during its inauguration in Abuja. The newly enacted tax laws include the Nigeria Tax Act 2025, the Nigeria Tax Administration Act 2025, the Nigeria Revenue Service (Establishment) Act 2025, and the Joint Revenue Board (Establishment) Act 2025.

Oyedele emphasized that the review aims to clarify ambiguities, refine shortcomings, and effect further reforms, rather than reversing the 2025 reforms. He stressed that the Finance Bill 2027 should preserve the fundamental principles of the 2025 laws while adapting to new economic realities. The government received 134 submissions from stakeholders, which will inform the review.

Proposed changes include simplifying VAT thresholds, addressing multiple taxation, enhancing coordination among revenue authorities, and increasing digitalisation and data sharing. Oyedele cautioned that complexity in tax rules can increase the burden on businesses and urged the subcommittee to consider the economic impact of proposed changes, particularly on low-income households, workers, and businesses.

The subcommittee, chaired by the Federal Ministry of Finance's Permanent Secretary, will also review related regulations and develop a new framework aligned with the 2025 tax laws and international practices.