FG Ready to Rework VAT Structure: Taiwo Oyedele on Tax Reform Bills

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has announced that the Federal Government, under President Bola Ahmed Tinubu, is open to adjusting the contentious Value Added Tax (VAT) structure outlined in the tax reform bills currently before the National Assembly.

Oyedele made this revelation during an interview on Channels Television on Sunday.

The four proposed bills—the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill—aim to revamp the nation’s tax framework but have ignited heated discussions since their introduction to the National Assembly in October 2024.

According to Oyedele, the suggested VAT model, based on the Derivative Principle, is designed to equitably benefit all regions of the country, countering criticisms from various quarters. He clarified that if stakeholders preferred the current Attribution Principle, his team was ready to accommodate that preference.

“Our priority is ensuring we don’t lose the opportunity to propel Nigeria forward,” Oyedele emphasized. “If the consensus is to retain the existing VAT formula, we will comply entirely. However, it’s crucial to separate the problem we’re addressing from the misconceptions surrounding it.”

The Federal Government remains committed to fostering an inclusive and effective tax system while addressing public concerns.