Updated as at 16
th
July, 2008iii
Draft National Tax Policy
Executive Summary
The National Tax Policy provides direction for the future of the Nigerian tax system inorder to help stimulate the economy in a way that will be of benefit to all Nigerians. Inachieving this goal, this document provides a set of guiding principles for all taxation inNigeria. It shall provide a stable point of reference for all stakeholders in the system anda standard on which they would be held accountable. The following points are thehighlights of this document.
•
The overriding objective of the
National Tax Policy is to
provide a stable point of reference for all Stakeholders in the country on which they shall be held accountable as this will facilitate
economic growth and development.
•
The taxes in the Nigerian tax system shall be few in number, broad-basedand high revenue-yielding.
•
The overall Nigerian Tax System shall be fair, so that similar cases aretreated equally while different cases are handled based on their respectivepeculiarity.
•
There shall be a shift in the focus of the tax system from direct taxation toindirect taxation. Nigeria should seek to have low rates of Companies IncomeTax and Personal Income Tax by international comparison. This would thenbe accompanied by a gradual increase in the rate of Value Added Tax (VAT).An increase in the emphasis on VAT
and Customs duties
should have anupward effect on the country’s stable revenue base,
at least from the perspective of the ease of collection and yield.
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