The Presidency has pushed again in opposition to observations made by KPMG on Nigeria’s newly enacted tax legal guidelines, insisting that the reforms mirrored deliberate coverage decisions rooted in financial logic, world greatest apply, and Nigeria’s long-term improvement targets.
In an in depth response issued by the Presidential Fiscal Coverage and Tax Reforms Committee, the federal government acknowledged that a few of KPMG’s factors regarding implementation dangers and clerical or cross-referencing points had been helpful.
Nevertheless, it stated the majority of the agency’s commentary was based mostly on a misunderstanding of coverage intent, mischaracterisation of reform decisions, and the presentation {of professional} preferences as factual errors.
The Presidency said that most of the points described by KPMG as “errors,” “gaps,” or “omissions” had been both incorrect conclusions, a failure to understand the broader reform context, or issues already recognized internally as editorial points.
Whereas noting that disagreement with coverage path is respectable, the committee confused that such disagreements shouldn’t be framed as defects within the legislation.
It added that different skilled corporations engaged straight with authorities through the reform course of, permitting for clarification and mutual studying.
On issues in regards to the taxation of shares and the inventory market, the Presidency clarified that the relevant tax on chargeable features just isn’t a flat 30 per cent, however ranges from zero to a most of 30 per cent, which is ready to cut back to 25 per cent.
It stated the vast majority of traders qualify for unconditional exemptions or exemptions linked to reinvestment, including that the declare that the reforms would set off a market sell-off was unsupported.
Addressing graduation and transition points, the committee rejected the suggestion that the reforms ought to start strictly from the beginning of an accounting interval, arguing that wholesale tax reform impacts a number of evaluation bases, transaction timelines, audits, credit, and penalties that can’t be neatly confined to a single date.
The Presidency additionally defended provisions on oblique switch of shares, describing them as aligned with world greatest apply and worldwide tax initiatives aimed toward closing long-standing loopholes exploited by multinationals. It dismissed claims that the measure might undermine financial stability.
On value-added tax, the response famous that insurance coverage premiums usually are not taxable provides underneath Nigerian tax legislation, making requires express VAT exemption pointless.
It described such recommendations as tutorial, given the long-standing authorized and administrative place.
The committee additional defined that the composition of the Joint Income Board was intentional, designed to offer a sub-national income perspective that enhances federal fiscal coverage, and in line with the construction of the previous Joint Tax Board.
Different areas addressed included dividend therapy, non-resident tax registration, overseas insurance coverage premiums, parallel market overseas trade deductions, VAT-linked deductibility, and the introduction of a progressive private revenue tax regime.
The Presidency stated these provisions had been fastidiously calibrated to advertise equity, help enterprise formalisation, strengthen the naira, and guarantee compliance, whereas remaining aggressive by worldwide requirements.
The federal government additionally faulted KPMG for what it described as false inclusions and factual errors, together with references to the Police Belief Fund, which it stated expired in June 2025, and points round small-company tax thresholds that pre-dated the brand new legal guidelines.
Based on the Presidency, KPMG’s evaluation didn’t adequately spotlight key structural enhancements within the reforms, akin to tax harmonisation, deliberate discount of company tax charges, expanded enter VAT credit, exemptions for low-income earners and small companies, elimination of minimal tax on turnover and capital, and enhanced funding incentives for precedence sectors.
The committee stated the tax reform adopted intensive stakeholder consultations and legislative scrutiny, and that any clerical inconsistencies recognized could be addressed by means of administrative steerage, rules, and future amendments.
It urged stakeholders to maneuver from what it described as “static critique” to constructive engagement to make sure efficient implementation of the brand new tax legal guidelines, which it stated symbolize a daring step towards a self-sustaining and aggressive Nigerian financial system.
