Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has clarified recent reports suggesting a proposed increase in VAT rates.
Responding to claims made in The Nation, Oyedele took to his official social media platform to address what he described as a misinterpretation of the committee’s recommendations.
According to Oyedele, the reports misrepresented the committee’s intentions. He emphasised that the proposed changes aim to alleviate the burden on businesses imposed by the current VAT system. Oyedele outlined key issues with the current system, including restrictions on input VAT claims and taxation of essential goods and services.
To address these concerns, the committee is suggesting several reforms. These include granting full input VAT credit to businesses, removing VAT on basic food, education, and healthcare items, and harmonising consumption taxes into a single VAT system. Additionally, the committee proposes increasing the threshold for VAT exemption for small businesses and enhancing the VAT refund process.
Oyedele emphasised that these proposals are subject to discussion and do not necessarily reflect the government’s stance. The committee is actively engaging with the private sector for feedback on the proposed reforms.
