The Federal Government has assured businesses that tax incentives granted under repealed tax laws will remain valid until their expiration dates, a move experts say provides certainty for investors but raises fresh questions about the cost of tax waivers to public finances.
The clarification, contained in the newly released transition guidelines for the Tax Acts 2025, means companies already benefiting from incentives and exemptions approved under previous tax laws will continue to enjoy those benefits until they lapse, even as the new tax framework takes effect.
New and pending applications, however, will be assessed under the provisions of the new tax laws.
“The transition guidelines have added a layer of administrative clarity for taxpayers, revenue authorities, and practitioners across the board,” said Ruth Chukwu, an associate at G. Elias.
According to her, the guidelines make clear that existing tax incentives and exemptions granted under repealed laws remain valid until their expiration dates, while new applications and pending requests will be considered under the Tax Acts 2025.
