FG REVIEWS VAT SYSTEM AS COMMITTEE BEGINS ASSESSMENT OF TAX FRAMEWORK

The Federal Government has established a committee to review the country’s Value Added Tax (VAT) framework as part of efforts to improve the efficiency and effectiveness of the tax system.

The committee is expected to examine existing VAT policies, identify areas requiring reform, and recommend measures that can strengthen revenue generation while reducing challenges faced by businesses and taxpayers.

Government officials said the review is aimed at creating a more transparent and sustainable VAT system that supports economic growth without placing unnecessary pressure on individuals and businesses.

Tax experts have welcomed the move, noting that reforms could help address issues around compliance, administration, and revenue collection. They stressed the importance of ensuring that any changes balance government revenue needs with the realities faced by businesses operating in the economy.

The Federal Government said the review will involve consultations with relevant stakeholders, including businesses, tax professionals, and industry groups.

Stakeholders believe a more efficient VAT framework could improve Nigeria’s tax system, boost public revenue, and create a more predictable environment for economic activities.