Taiwo Oyedele, chairman of the presidential fiscal policy and tax reforms committee, has launched a public poll to gather opinions on proposed VAT exemptions for essential items.

The proposals include exempting education, food, healthcare, rent, transportation, and small businesses from VAT, as well as introducing a zero percent VAT rate on intellectual property and services to boost exports.

Oyedele highlighted that these changes aim to reduce the VAT burden on households and offset potential revenue losses by adjusting rates on non-essential items. He emphasized that the new regime would help protect consumers, provide financial relief for states, and offer businesses full VAT credit on their assets and services, thus lowering overall costs and curbing inflation.

The committee’s proposals also address issues under the current tax system, where many essential items are taxed while some are exempt, and highlight the challenges faced by businesses in recovering VAT and managing VAT refunds. The reforms seek to streamline the tax process and enhance the competitiveness of Nigerian exports.