Nigeria Full List of VAT-Free Items Released Under Tinubu’s Tax Reforms

The Digest:

The Federal Inland Revenue Service (FIRS) has announced a list of essential goods and services now exempted from Value Added Tax (VAT) under President Bola Tinubu's new tax reform laws. FIRS Executive Chairman Zacch Adedeji confirmed the exemption of four major sectors during an interview marking his two years in office

Key Points:

• The FIRS has announced VAT exemptions for food, education, transport, and agricultural items.
• FIRS Chairman Zacch Adedeji stated this fulfills President Tinubu's promise to reduce business hurdles.
• The new tax code consolidates multiple laws and simplifies the tax system.
• Businesses with an annual turnover below ₦50 million are exempt from company income tax.
• Nigeria's tax-to-GDP ratio has increased from 10% to 13.5%, targeting 18% by 2027.
• The FIRS will be renamed the Nigeria Revenue Service to reflect its broader mandate.
• The reforms are part of four new tax acts signed into law in June 2025.

This policy represents a strategic effort to alleviate cost pressures on essential living expenses while simultaneously broadening the tax base and improving revenue collection efficiency.

Sources: Nigerian Tribune