Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, don clear air over concerns wey KPMG Nigeria raise about Nigeria newly gazetted tax laws, say most of the issues na misunderstanding of policy intention and not real errors.
For statement wey e release on Saturday, Oyedele talk say while some of the points wey KPMG raise make sense, large part of the report wrongly describe the aim and structure of the new tax framework.
According to am, “We welcome all views wey go help people understand and implement the new tax laws well. Some points wey KPMG raise useful, especially where dem touch implementation risk and small clerical or referencing issues.”
But the committee insist say majority of the publication show misunderstanding of the policy direction and deliberate reform choices wey government take.
“The truth be say most of wetin dem describe as ‘errors’, ‘gaps’ or ‘omissions’ na either wrong conclusions, things taken out of context, or areas where dem just prefer different outcome from wetin government deliberately choose,” the statement talk.
Oyedele add say disagreement with policy direction no mean say error dey inside the law.
“For shares and stock market matter, the committee explain say the tax structure run from 0% to maximum of 30%, wey go later drop to 25%, and say about 99% of investors qualify for full exemption.”
E dismiss fear of market sell-off, say any share disposal for December 2025 go benefit from reinvestment exemption or better deductions under the new law.
On when the law suppose start, Oyedele say strict alignment with accounting periods dey too narrow and no consider the complex transition issues wey come with full tax reform, including audits, deductions, credits and penalties.
For indirect transfer of shares, the committee say the provision na deliberate policy choice, align with global best practice and BEPS rules, to block loopholes multinational companies don dey use over the years.
On insurance premiums, Oyedele clarify say dem no subject to VAT because insurance no qualify as taxable supply under the Nigeria Tax Act, so no need for special exemption.
E also explain say the definition of “community” for the law apply everywhere unless context change am, and say the word “includes” mean say the list no end there.
On dividend matter, the committee say foreign company dividends no fit be franked because no Nigerian withholding tax dey deducted. E add say treating Nigerian company dividends different from foreign ones na deliberate policy choice because dem no be the same for tax purpose.
The statement further clarify say non-residents still need register for tax even if their income don suffer final withholding tax, because tax returns dey serve other compliance purposes.
Other points include ban on deductions using parallel market exchange rates, wey government describe as fiscal tool to support monetary policy; linking tax deduction to VAT compliance as anti-avoidance measure; and Police Trust Fund matter, wey don expire since June 2025, so repeal no dey necessary.
The committee also note say issues about small company exemption don dey since Finance Act 2021, before the new laws.
Oyedele assure say any small clerical or referencing mistake wey remain dey already under internal review and go be fixed through regulations and administrative guidance.
“The tax reform na bold step toward self-sustaining and competitive Nigeria,” the statement conclude, urging stakeholders make dem move from only criticism to active engagement to ensure smooth implementation.
This response follow KPMG Nigeria report wey earlier warn say some parts of the new tax laws fit affect businesses and taxpayers. But Oyedele insist say the reforms na intentional, broad and designed to improve fairness, competitiveness and government revenue.
