Echotitbits – Nigeria News

Tag: VAT

  • National Revenue Service Clarifies Input Recovery Benefits in New Tax Act

    National Revenue Service Clarifies Input Recovery Benefits in New Tax Act

    According to TVC News, the Nigeria Revenue Service (NRS) has begun an intensive sensitization campaign to explain the benefits of the new Tax Act to skeptical business owners. A key highlight of the new regime is the transition to a 7.5% “full input recovery” system, which now includes services and capital expenditure (capex), unlike the old regime which was far more restrictive. Executive Chairman Zacch Adedeji emphasized that these reforms are intended to reduce the overall tax burden on productive sectors while widening the tax net.

    The new Act also streamlines Personal Income Tax (PIT) and Company Income Tax (CIT) to remove “nuisance taxes” that have historically complicated compliance for Small and Medium Enterprises (SMEs). Despite these explanations, many Nigerians remain wary of the NRS’s expanded enforcement powers. The government, however, insists that the automation of tax collection will reduce human interface and corruption, ultimately leading to a more transparent fiscal environment.

    Validating these updates, Channels TV reported on the public’s mixed reactions to the “full input recovery” clause, with an economic analyst stating, “While the math looks good for big corporations, small businesses still fear the aggressive enforcement stance of the NRS.” The Nation also covered the development, quoting Taiwo Oyedele of the Presidential Tax Reform Committee: “Our goal is to make Nigeria a tax-friendly destination where the system is fair and predictable.”

    Echotitbits take:

    The “full input recovery” is a significant olive branch to the manufacturing and service industries. It essentially means businesses can recoup more of the VAT they pay on operations. However, the success of this policy depends on whether the NRS can actually process these refunds faster than the old, sluggish system.

    Source: Arise – https://www.arise.tv/lirs-activates-power-of-substitution-under-new-tax-law-to-boost-tax-recovery/, February 11, 2026

    Photo credit: Arise

  • Presidency pushes back on KPMG critique of new tax laws, says reforms are deliberate

    Presidency pushes back on KPMG critique of new tax laws, says reforms are deliberate

    Reporting by Vanguard indicates the Presidency has rejected elements of a KPMG critique of Nigeria’s new tax laws, insisting the reforms were designed with specific policy trade-offs in mind.

    The report suggests the government is trying to calm uncertainty for businesses and investors, especially around implementation details, compliance costs, and transitional arrangements.

    Analysts say pushback alone won’t settle concerns; what matters is clarity—guidelines, timelines, dispute-resolution pathways, and how enforcement will be applied to SMEs and large corporates.

    Businesses will be watching for harmonisation to reduce multiple taxation and for improvements in tax administration to curb arbitrary charges.

    Echotitbits take: This is a credibility moment. Watch for implementing regulations and whether revenue agencies standardise processes—or whether the old ‘multiple levies’ problem persists.

    Source: Vanguard –  https://www.vanguardngr.com/2026/01/presidency-rebuts-kpmgs-claims-on-new-tax-laws-defends-reform-choices-2/ 11 January 2026

    Vanguard 2026-01-11

    Photo Credit: Vanguard

  • Revenue Service Pushes E-Invoicing as New System Integrators Get Accreditation

    Revenue Service Pushes E-Invoicing as New System Integrators Get Accreditation

    A report from The Punch indicates the National Revenue Service (NRS) has accredited new system integration partners to support automated e-invoicing, a move aimed at improving compliance and reducing leakages.

    The initiative is designed to let businesses connect accounting systems to national tax infrastructure, enabling real-time transaction data and more accurate VAT assessments.

    SMEs are being encouraged to adopt compliant solutions early to avoid penalties once enforcement tightens.

    **Echotitbits take:** E-invoicing can cut fraud and boost transparency, but adoption will be toughest for small businesses. Watch for a grace period, incentives, and clear onboarding support so compliance doesn’t become another cost shock.
    Source : The Punch — https://punchng.com/nrs-boosts-e-invoicing-compliance-with-pillarcraft-accreditation/ 2026-01-08

    Photo Credit: The Punch

  • Aviation Regulator Pushes Back as Airlines Blame Taxes for Rising Airfares

    Aviation Regulator Pushes Back as Airlines Blame Taxes for Rising Airfares

    2025-12-30 09:30:00

    Reporting by Punch indicates the NCAA challenged claims that multiple taxes are the main driver of high airfares, as public debate grew around new tax laws and ticket pricing.

    The row followed warnings by Air Peace chairman Allen Onyema that aviation costs could worsen and fares could rise sharply if tax burdens persist.

    Regulators and tax-reform officials argue the reforms are meant to simplify and reduce certain burdens, while operators insist the broader levy-and-charge ecosystem remains heavy.

    Vanguard quoted Onyema saying, “The Nigerian airlines are heavily overburdened by taxes, levies and all manner of charges.” P.M. News quoted Taiwo Oyedele saying, “Eliminating this burden is a major structural relief for the sector,” as he explained tax changes affecting aviation.

    Echotitbits take: This will turn into a data contest—operators will cite cashflow strain, regulators will cite reform details. Watch for NCAA’s consumer-protection actions and a clear aviation-specific implementation note on VAT/WHT and leasing-related taxes.

    Source: The Punch — December 29, 2025 (https://punchng.com/airfares-hike-ncaa-tackles-air-peace-boss-rejects-tax-claim/)

    The Punch 2025-12-29

    Photo Credit: The Punch

  • Tax reform countdown: Manufacturers upbeat as Labour and SMEs warn of backlash

    Tax reform countdown: Manufacturers upbeat as Labour and SMEs warn of backlash

    Photo Credit: The Punch
    2025-12-28 09:00:00

    Reporting by Punch indicates Nigeria’s new tax reform laws are still slated to take effect on January 1, 2026, despite widening pushback from some labour and SME stakeholders.

    Industry groups say the package could simplify compliance and reduce distortions, while critics argue implementation timing and transparency concerns around the final gazetted text could trigger new disputes.

    Government-linked reform advocates have framed the rollout as a shift toward fairness—targeting relief for most workers and smaller firms—while signalling willingness to fix drafting or referencing issues through the legislature without shifting the start date.

    Channels Television quoted committee chairman Taiwo Oyedele saying, “The implication of not implementing the new tax laws by January 1, 2026, is that the bottom 98 per cent of workers remain overtaxed.” AIT Live also reported the government “has affirmed that there will be no reversal in the planned implementation… scheduled to take effect on January 1, 2026.”

    Echotitbits take: The political test is whether implementation becomes a trust-building exercise (clear gazette, plain-language guidance, phased enforcement) or another elite policy fight. Watch the National Assembly’s re‑gazetting process and how quickly tax authorities publish compliance guides for SMEs.

    Source: The Punch — December 28, 2025 (https://punchng.com/four-days-to-tax-reform-manufacturers-excited-labour-smes-threaten-revolt/)

    The Punch 2025-12-28

  • FIRS Taps PwC to Help Businesses Plug Into Mandatory E-Invoicing Regime

    FIRS Taps PwC to Help Businesses Plug Into Mandatory E-Invoicing Regime

    Photo Credit: The Punch
    2025-12-26 06:30:00

    Figures cited by *PUNCH* show Nigeria’s tax authority is accelerating its push into transaction-level digital reporting, with PwC Nigeria accredited to support integration into the Monitoring, Billing and Settlement (MBS) platform that underpins mandatory e-invoicing.

    The move signals a shift from retrospective filings toward near real-time validation, placing new compliance and systems demands on corporates, SMEs, and high-volume retail sectors that issue invoices at scale.

    For businesses, the operational implication is clear: e-invoicing becomes a systems-and-controls project—touching ERPs, point-of-sale, audit trails, and data governance—rather than a “tax department only” problem.

    The policy aim is broader transparency and reduced leakage, but the transition could be bumpy for firms with weak digitisation or inconsistent record-keeping.

    *THISDAY* quoted PwC’s Chijioke Uwaegbute saying, “e-Invoicing embeds tax compliance directly into everyday business activity,” while *BusinessDay* noted the regime “requires invoices to be authenticated at source,” reinforcing that integration is becoming a regulatory necessity, not a technical extra.

    Echotitbits take: Nigeria is moving toward the global direction of continuous transaction controls. The big watch item is execution—clarity of timelines, sandbox testing, cost burden on SMEs, and whether enforcement is paired with support to avoid a compliance shock.

    Source: The Punch — Dec 26, 2025 (https://punchng.com/firs-accredits-pwc-as-system-integrator-for-e-invoicing/)

    Photo credit/source: The Punch
    The Punch 2025-12-26

  • House Panel Fast-Tracks Probe Into Alleged “Gazette” Tax-Law Discrepancies

    House Panel Fast-Tracks Probe Into Alleged “Gazette” Tax-Law Discrepancies

    Photo Credit: The Punch
    2025-12-25 10:00:00

    Reporting by Punch indicates Nigeria’s House of Representatives panel investigating alleged inconsistencies between tax laws passed by lawmakers and versions later gazetted has promised to finish quickly and submit a report without delay.

    The panel, chaired by Muktar Betara, was constituted after lawmakers raised concerns that provisions in the gazetted laws may differ materially from what the National Assembly approved—raising questions about legislative integrity and the reliability of statutes being implemented.

    The controversy has also drawn political pressure, with Senator Ali Ndume urging President Bola Tinubu to pause implementation of disputed tax reform measures slated for January until independent verification is completed.

    Elsewhere, The Guardian reported that the committee pledged to submit its findings once work is concluded, while quoting Taiwo Oyedele calling for patience: “let’s wait for the investigation to establish what indeed happened.” BusinessDay similarly reported the House set up a seven-member committee to investigate “alleged discrepancies” between gazetted tax laws and the versions passed by the National Assembly.

    Echotitbits take: This is becoming a credibility test for Nigeria’s fiscal reform push. If the “gazette vs passed copy” gap isn’t resolved transparently, enforcement will face legitimacy challenges, litigation risk, and compliance pushback. Watch for whether the panel publishes a side-by-side reconciliation of disputed clauses—and whether implementation timelines shift.

    Source: The Punch — December 25, 2025 (https://punchng.com/house-begins-tax-law-probe-ndume-pushes-for-suspension/?utm_medium=web&utm_source=top-story)

    The Punch 2025-12-25

  • FAAC shares ₦2.094trn to FG, states and LGAs from October revenue

    FAAC shares ₦2.094trn to FG, states and LGAs from October revenue

    PunchNG (illustrative image)
    2025-11-01

    From a Federal Ministry of Finance update, FAAC shared ₦2.094 trillion as federation allocation for October 2025, drawn from a gross total of ₦2.934 trillion.

    Monthly FAAC inflows shape state liquidity, wage payments, and capital spending, while also reflecting swings in oil receipts, VAT and other revenue lines.

    The breakdown highlights why fiscal planning remains sensitive to revenue volatility.

    Vanguard: “distributed a total of N2.094 trillion…”

    TheCable: “shared… N2.09 trillion for October.”

    Analysis/Echotitbits take: Volatility remains the headline risk. Watch how non-oil reforms affect VAT and statutory inflows, and whether states publish clearer spending outcomes tied to FAAC receipts.

    Source: Federal Ministry of Finance (Nigeria) — November 01, 2025 (https://finance.gov.ng/fg-states-lgcs-share-n2-094-trillion-from-a-gross-total-of-n2-934-trillion-for-the-month-of-october-2025/)