The Federal Inland Revenue Service has said that the Federal Government intends to levy a Value Added Tax of N5 trillion in 2024, while simultaneously implementing methods to eliminate identified tax loopholes.
It further stated that the FG was prepared to comply with the Economic Community of West African States’ decision on tax reform.
Zacch Adedeji, Chairman of the FIRS, stated this during a news conference held by the Support Programme for Tax Transactions in West Africa, which is funded by the European Union and ECOWAS, in Abuja on Thursday.
The chairman, represented by an agency officer, Mr Matthew Osanekwe, stated that the VAT has been increasing since 2019, stating N1.9 trillion, N1.5 trillion, N2.5 trillion, N2.3 trillion, and 3.6 trillion in 2019, 2020, 2021, 2022, and 2023, respectively.
He also stated that the administration is harmonising with ECOWAS Article 30 on tax changes.
Article 30 of the ECOWAS VAT reform reads:
“Each member state shall have the liberty to fix the VAT rate applicable to taxable operations within a bracket ranging between 5 and 20 0/0. However, member states could establish a reduced rate whose scope and rate shall be determined by the Council of Ministers.”
cc: Punch Ng
