In a major policy shift aimed at easing financial pressure on citizens and stimulating the economy, President Bola Tinubu has announced a set of tax reforms that will exempt key services from Value Added Tax (VAT). Among the most notable changes is the removal of VAT on residential rent, a move expected to bring relief to millions of Nigerian households.
Key Measures in the Reform Package:
- VAT Exemption for Essential Services: The new policy eliminates VAT charges on house rents, public transportation, and renewable energy products. It is part of a broader push to shield critical sectors such as food, healthcare, and education from consumption taxes, with the goal of increasing purchasing power and reducing inequality.
- Driving Inclusive Economic Growth: President Tinubu underscored that the reforms go beyond revenue concerns, focusing instead on fairness and broad-based development. The removal of overlapping tax obligations is intended to support small businesses and encourage their transition into the formal economy.
- Strategic Sector Incentives: The administration also revealed plans for targeted tax incentives aimed at high-impact industries, including manufacturing, agriculture, and technology. The goal, officials say, is to create a more competitive business environment and boost job creation.
These reforms are part of the Tinubu administration’s larger economic strategy, which emphasizes sustainability, equity and investment-led growth. By lowering the cost of essential goods and services, the government hopes to lay the foundation for a more inclusive and prosperous future for all Nigerians.
