Chartered Institute of Taxation of Nigeria (CITN) has endorsed the country’s new tax regime, saying the reforms will ease the burden on households, support businesses and stimulate economic growth.
Speaking during a tax awareness campaign in Abuja, the President of CITN, Innocent Ohagwa, said the reforms introduced several taxpayer-friendly measures, including zero-rated Value Added Tax (VAT) on essential goods and services such as food, education, healthcare, electricity transmission and non-oil exports.
According to him, the VAT relief is expected to reduce the cost of living for households while encouraging economic activities across key sectors.
Ohagwa also said the new tax laws raised exemption thresholds for compensation paid for loss of employment or personal injury, providing stronger financial protection for affected individuals.
He noted that the reforms would be particularly beneficial to small businesses, explaining that companies with annual turnover of not more than N100 million and fixed assets not exceeding N250 million are now exempt from Companies Income Tax (CIT), Capital Gains Tax (CGT) and the development levy.
“This means thousands of small businesses can now reinvest in growth, job creation and innovation,” he said.
The CITN president added that the reforms also introduced targeted tax incentives for strategic sectors, including agriculture, aquaculture, dairy production, cocoa processing and animal feed manufacturing, to boost food security and attract investment.
While highlighting the benefits of the reforms, Ohagwa stressed that taxpayers must comply with their obligations to enjoy the incentives.
“While these reforms provide significant opportunities, taxpayers must also understand that enjoying these benefits comes with responsibilities,” he said.
Ohagwa expressed concern over what he described as widespread misconceptions surrounding the new tax regime, noting that inaccurate information had created unnecessary anxiety among taxpayers.
According to him, some Nigerians wrongly believe the reforms introduced new taxes across all aspects of economic activity, while others assume they were designed solely to increase government revenue without considering taxpayers’ welfare.
He said some business owners were also worried about compliance obligations without fully understanding the reliefs and protections available under the new tax laws, adding that conflicting information circulating on social media had further fuelled confusion.
The CITN urged Nigerians to seek accurate information on the reforms and take advantage of the incentives provided under the new tax regime.
