The Association of Capital Market Academics of Nigeria (ACMAN) has opposed the proposed increase in Value Added Tax (VAT) from 7.5% to 10% in 2025, with further increments to 12.5% in 2026 and 15% by 2030.
Speaking at the public hearing on tax reforms, ACMAN President, Uche Uwaleke stated that the proposed VAT hike would raise transaction costs in the Nigerian capital market, discourage investments and exacerbate inflationary pressures in the economy.
The association said now is not the right time for a VAT increase, given the prevailing economic challenges.
However, ACMAN expressed support for Section 56 of the Nigerian Tax Bill 2024, which proposes a gradual reduction in corporate income tax (CIT) for large companies from the current 30% to 27.5% in 2025, and further to 25% by 2026.
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The group highlighted that this reduction would improve Nigeria’s business climate, as the country currently has one of the highest CIT rates in Sub-Saharan Africa.
ACMAN also welcomes the tax incentives for small businesses, including increased exemption thresholds, stating that such measures would likely spur business activities, create job opportunities, and drive economic growth.
The association emphasized that the successful implementation of the proposed tax reforms would provide much needed relief for the Nigerian economy and boost investor confidence in the capital market.
(Editor: Okechukwu Eze)
