ICAN Hails Tinubu on New Tax Law, Says It Will Impact Livelihoods Positively
The Institute of Chartered Accountants of Nigeria (ICAN) has commended President Bola Ahmed Tinubu for signing into law a series of comprehensive tax reforms, describing them as a major advancement in Nigeria’s fiscal framework and a step toward improving the livelihoods of citizens.
Speaking at the investiture ceremony of the fifth Chairman of the Abuja and District Society of ICAN in Gwagwalada, Abuja, the 61st President of the Institute, Mallam Haruna Yahaya, described the newly signed tax laws as the most holistic and impactful reform in the nation’s tax system in over 50 years.
He noted that the reforms would streamline tax administration, reduce the burden on low-income earners, and support small businesses across the country.
President Tinubu recently signed four tax-related bills into law: the Nigeria Tax Act, Tax Administration Act, Nigeria Revenue Service Act, and the Joint Revenue Board Act.
These laws are expected to unify and simplify tax legislation, improve efficiency, and enhance compliance.
Yahaya highlighted the positive impact of the new Value Added Tax (VAT) structure, which maintains the current rate at 7.5 percent but exempts essential goods and services such as food, healthcare, education, residential rent, and exports. He said this approach would shield vulnerable Nigerians from inflationary pressures while ensuring fairer tax distribution.
The establishment of the Nigeria Revenue Service to replace the Federal Inland Revenue Service was also praised for its potential to strengthen transparency and accountability in revenue collection. ICAN expressed support for the newly created Tax Appeal Tribunal and Tax Ombudsman, noting that they would enhance taxpayer confidence and promote fairness.
ICAN called on the federal government to prioritize awareness campaigns, stakeholder engagement, and capacity building to ensure smooth implementation of the laws, which are expected to take effect from January 1, 2026. The Institute emphasized the importance of intergovernmental coordination to avoid overlaps in tax collection and administration.
Yahaya reaffirmed ICAN’s commitment to supporting the government’s economic agenda through technical input, policy advisory, and professional training. He expressed optimism that the reforms would help raise Nigeria’s tax-to-GDP ratio without harming economic growth or increasing hardship for the poor.
