The national tax policy review committee has completed its assignment and yesterday submitted the revised National Tax Policy (NTP) to the finance minister. It is expected that the NTP will be approved by the Federal Executive Council and the National Economic Council before its implementation can begin. If properly implemented, the NTP should lead to a significant improvement in the Nigeria tax system.
The NTP contains measures designed to:
- Address multiplicity of taxes and multiplicity of Revenue agencies
- Reduce income tax rates and compliance burden for Micro, Small and Medium Enterprises
- Improve Nigeria's ranking on the global ease of paying taxes index from the current 181 to top 50
- Encourage diversification, expand the country's tax base and improve Tax to GDP ratio
Watch this space for updates and more analyses. As to whether it is a new dawn or another false start, I guess time will tell.
Here is a copy of the revised NTP for your reference. Download Revised NTP 28 Sep 2016
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