Emmanuel OchayiDele Kelvin Oye, the National President of the National Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), has urged the Tinubu administration to adopt significant tax reform measures. In a statement signed personally by Oye, he called for a reduction in corporate taxes to 19% and the stabilisation of Value Added Tax (VAT) at 7.5%.
NACCIMA highlighted that the current tax reform bills in the National Assembly suggest a progressive increase in VAT from 10% in 2025 to 12.5% between 2026 and 2029, and 15% from 2030 onward. Oye argued that lowering these rates would stimulate economic growth and eventually boost government revenue.
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Oye stated, “We believe corporate taxes should be further reduced to 19% and VAT pegged at 7.5%. This approach will not only grow the economy but also lead to higher tax revenues for the government. However, each taxpayer should not pay less than the preceding tax year as a safeguard for government revenues.”
He also expressed concerns about the ongoing disputes between federal and state governments over revenue sharing, which, according to him, often overshadow the core interests of taxpayers. “The current media engagement between federal and state governments in newspaper and press releases only confirms the disconnect,” Oye noted.
Telecommunications Sector and Targeted Reforms
Oye emphasised the need for targeted reforms in sectors like telecommunications, which significantly contribute to government revenue. He urged for inclusive discussions involving the private sector to unlock further growth potential.
“Significant taxpayers like the telecommunications sector require reforms that will lead to increased tax revenues. There must be real dialogue with genuine concessions made by all parties involved,” he said.
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Private Sector Inclusion in Tax Reform
NACCIMA’s statement stressed the importance of including the private sector in tax reform discussions. Oye criticised the current practice of using committees that merely lecture taxpayers without achieving meaningful outcomes.
“The private sector, including aviation, telecommunications, manufacturers, and Free Trade Zones, must be engaged in written communication. Committees that come to lecture taxpayers are not producing positive results. The outcomes of these engagements should be forwarded to the National Assembly through the Attorney General’s office as directed by Mr. President,” Oye suggested.
Call for Effective Coordination
Oye’s call for effective coordination and dialogue aims to ensure that tax reforms are beneficial not only for the government but also for the taxpayers. By including private sector stakeholders, NACCIMA believes that more practical and efficient tax reform measures can be achieved.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
