A revised National Tax Policy (NTP or the Policy) was approved by the Federal Executive Council (FEC) of Nigeria on 1 February 2017. The approval is an aftermath of the submission made by the NTP Review Committee, set up by the Minister of Finance in August 2016 for the review of the old NTP that was initially issued in 2012. The committee, headed by Prof Abiola Sanni, submitted its report in September 2016.
NTP was first published in 2012 as a deliberate effort towards entrenching a robust and efficient tax system in Nigeria. Although not much happened with respect to implementation, the rapidly changing business environment makes revision imperative.
When compared with the old NTP, the revised NTP is a slimmer and more concise version, which is more reader friendly with just about 12 pages grouped into 5 chapters. It is clearer and contains actionable implementation and monitoring strategies.
The revised NTP reinforces the underlying principles of the Nigeria tax system as equity and fairness, simplicity, certainty and clarity, convenience and efficiency, flexibility and sustainability.
If appropriately implemented and monitored, the Policy will contribute significantly to the drive for foreign investment and economic diversification. It will also help in reducing the ambiguities attributable to the tax system, increase taxpayers’ compliance level and improve the general tax compliance culture.
Details of the Policy are fully examined HERE.