Nigeria has set up an inter-ministerial committee to draft a new Value Added Tax (VAT) Modification Order, the latest step in implementing the country’s biggest tax overhaul in decades as the government seeks to provide greater certainty for businesses and investors.
The committee, inaugurated in Abuja on Friday by Finance Minister Taiwo Oyedele, will develop a new framework for VAT exemptions and zero-rated goods under the Tax Reform Acts that came into force on January 1.
The order is expected to clarify how the new tax laws will be applied across sectors, including which goods and services qualify for VAT exemptions or zero-rating — an issue closely watched by manufacturers, importers and other businesses because of its implications for production costs and pricing.
“The Tax Reform Acts represent the most comprehensive reform of Nigeria’s tax system in decades,” Oyedele said at the inauguration.
“They simplify our tax laws, improve certainty, enhance competitiveness, protect vulnerable Nigerians, and position our economy for sustainable growth.”
