₦airaland Forum

The new Nigeria Tax Act has exempted several items from the 7.5 percent value-added tax (VAT)

The legislation is among four tax reform bills signed into law by President Bola Tinubu on June 26.

The others are the Nigeria Tax Administration Act, the Joint Revenue Board (Establishment) Law, and the Nigeria Revenue Service (Establishment) Act.

The laws are expected to take effect from January 1, 2026, under a renamed agency — the Nigeria Revenue Service (NRS).


The Nigeria Tax Act, seen by TheCable, exempts about 15 items from the VAT, subjecting an additional 19 to VAT at a zero percent rate.

Here’s a list of items that fall under the VAT exemption category.

No. ITEMS
1 Oil and gas exports

2 Crude petroleum oil and feed gas for all processed gas

3 Goods purchased for use in humanitarian donor funded projects

4 Baby products

5 Locally manufactured sanitary towels, pads or tampons

6 Military hardware, arms, ammunitions and locally manufactured uniforms supplied to armed forces, para-military and other security agencies of a Nigerian government

7 Shared passenger road-transport service

8 Purchase, hire, rental or lease of tractors, ploughs and other equipment used for agricultural purposes.

9 Supplies consumed by an approved entity in the export processing or free trade zones, provided that the supplies are consumed on its approved activity

10 Goods or services supplied to a diplomatic mission, diplomat or person recognised under the Diplomatic Immunities and Privileges Act whose activity is in public interest, and not for profit

11 Plays and performances conducted by educational institutions as part of learning

12 Land or building including interest in land or building

13 Money or securities including interest in money or securities

14 Government licences

15 Assistive devices and disability-related products including hearing aids, wheelchairs, and braille materials


TAXABLE SUPPLIES CHARGED TO VAT AT 0%

No. ITEM
1 Basic food items

2 All medical and pharmaceutical products including medicinal herbal products

3 Educational books and materials

4 Fertilisers

5 Locally produced agricultural chemicals

6 Locally produced veterinary medicine

7 Locally produced animal feeds

8 Live cattle, goats, sheep and poultry

9 agricultural seeds and seedlings

10 Electricity generated by generation companies (GENCOs) and supplied to national grid or Nigeria Bulk Electricity Trading Company (NBET)

11 Electricity transmitted by Transmission Company of Nigeria (TCN) to electricity distribution companies (DISCOs)

12 Medical services

13 Tuition relating to nursery, primary, secondary or tertiary education

14 Exported goods excluding oil and gas

15 Exported services

16 Exported incorporeal property

17 Medical equipment

18 Electric vehicles

19 Parts, semi-knock-down units for the assembly of electric vehicles


ADDITIONAL VAT EXEMPTIONS IN OIL, GAS SECTOR

On October 2, 2024, the federal government introduced the VAT modification order and notice of tax incentives for deep offshore oil and gas production.

The order exempted VAT collection on a range of key energy products and infrastructure, including diesel, feed gas, liquefied petroleum gas (LPG), compressed natural gas (CNG), electric vehicles, liquefied natural gas (LNG) infrastructure, and clean cooking equipment.


Two days later, Taiwo Oyedele, chairman of the presidential committee on fiscal policy and tax reforms, unveiled the 63 items exempted from VAT.

According to the new tax Act, the VAT would not be collected on petroleum products, renewable energy equipment, compressed natural gas (CNG), LPG, and other gaseous hydrocarbons.

However, the law stipulated that the minister, by an order published in the official gazette, can determine when VAT collection would be suspended on the items.

“Charging and collection of VAT on the following items shall commence on the date indicated by the Minister, or suspended where it is expedient to do so in the public interest, by an order issued in the Official Gazette,” the document further stated.

According to the act, some other items may also be classified as exempt or zero-rated supplies by an order issued by the minister in the official gazette.

The listed items include equipment, components and infrastructure related to the conversion and installation or expansion of CNG and LPG, including conversion kits; and services relating to the conversion and installation of CNG and LPG.

https://www.thecable.ng/full-list-sanitary-pads-products-energy-exports-land-items-exempted-from-vat-in-new-tax-law/

Meanwhile some election losers with low understanding were kicking against the bills when it was first proposed. What you can't see climbing Kilimanjaro, Jagaban could see when sitting down.

Hahaha, na food we dey after oo, it's not even about the price of the food but government not bringing it to our table

Putindbutt:
Meanwhile some election losers with low understanding were kicking against the bills when it was first proposed. What you can't see climbing Kilimanjaro, Jagaban could see when sitting down.

Election losers were the ones crying ebinpawa?

The bills some people were against

The bills some people were against just because thier masters in the north rejected it

Why food stuff tax dey on it? Why?
They want us to be fasting while they're are feasting.

jmoore:
Election losers were the ones crying ebinpawa?

. nobody cry we dey hungry pass election losers. Even on Nairaland, na so so hunger you dey shout.

Kanixt:
Why food stuff tax dey on it? Why?
They want us to be fasting while they're are feasting.

These are the Obidient, put anything in black and white, they can't read.

Including sanitary pads? Wow!
Now, they're talking!

Honestly, I've been wondering how young (secondary school) girls can afford sanitary pads.
Hopefully, now it'll be cheaper for them.

The tax exemption is a good move.
I applaud it. 👏🏼👏🏼👏🏼

All the ones the have removing since what happened, Apc and propaganda are 5/6.

Government around the world distribute free sanitary pad to secondary school children

Putindbutt:
These are the Obidient, put anything in black and white, they can't read.

So sorry for you if you can't understand what you read.

Will that make this item cheaper


Because Nigeria is not knowing for reducing the prices of things once it is increased

This is a good one. The govt have tried for this one.

No be every time Una go dey bash the govt. I was very surprised when I saw people bashing the government for the gift they gave to the falcon girls . The thing shock me. I now remembered that there are 250million people on Nigeria. You can never ever please everyone.

Tax reforms, oil & gas sector reforms, Banking reforms, Capital market reforms, BDCs reforms, MDA reforms, Technical & Vocational Education reforms, Agricultural reforms, Livestock reforms, Digital reforms, Marine economy reforms, Mining sector reforms, Aviation reforms, Interior ministry reforms, etc.
God bless President Bola Ahmed Tinubu, God bless Nigeria.

-Kiss the truth!

Putindbutt:
Meanwhile some election losers with low understanding were kicking against the bills when it was first proposed. What you can't see climbing Kilimanjaro, Jagaban could see when sitting down.

Tinubu' remains the best for now from the few government I witnessed , from Obasanjo, Yaradua, Jonathan and Buhari

helinues:
Hahaha, na food we dey after oo, it's not even about the price of the food but government not bringing it to our table

Instead of you to go and bring it from govt to your table
...wa kpe ni be

Forget about VAT, the capital gains tax should be reduced by 50%.

Make capital gains tax 5% instead of 10%.


Na dat one concern me.

Environmental friendly, sanital Ur environment and clean up Ur flow

They should include condom naa is condom supposed to pay tax, is it because of falcons , all mentioned here are almost women items

jmoore:
Election losers were the ones crying ebinpawa?

Yesooo
.. Are obidients not the ones always bringing hunger in any discussion? If utalk to an obidient about physics somehow somehow he will sneak hunger topic into it... Law of physic will sudden become law of hunger

Putindbutt:
The new Nigeria Tax Act has exempted several items from the 7.5 percent value-added tax (VAT)

The legislation is among four tax reform bills signed into law by President Bola Tinubu on June 26.

The others are the Nigeria Tax Administration Act, the Joint Revenue Board (Establishment) Law, and the Nigeria Revenue Service (Establishment) Act.

The laws are expected to take effect from January 1, 2026, under a renamed agency — the Nigeria Revenue Service (NRS).


The Nigeria Tax Act, seen by TheCable, exempts about 15 items from the VAT, subjecting an additional 19 to VAT at a zero percent rate.


https://www.thecable.ng/full-list-sanitary-pads-products-energy-exports-land-items-exempted-from-vat-in-new-tax-law/

tinubu and apc go use tax finish una this country.

Putindbutt:
Meanwhile some election losers with low understanding were kicking against the bills when it was first proposed. What you can't see climbing Kilimanjaro, Jagaban could see when sitting down.

the man in black colour, can easily settle for less, look at black Africans in general,reason beyond nose become challenge to this people🥱

Lots of people are not going to be happy with this news because they want to keep telling people how bad this government is.....

Mariangeles:
Including sanitary pads? Wow!
Now, they're talking!

Honestly, I've been wondering how young (secondary school) girls can afford sanitary pads.
Hopefully, now it'll be cheaper for them.

The tax exemption is a good move.
I applaud it. 👏🏼👏🏼👏🏼

Read it well o, only locally manufactured sanitary pads are exempted, if you buy imported ones, you gonna have to pay VAT, comprehendé?

Pls what is the difference btw the Joint Revenue Board (Establishment) Law, and the Nigeria Revenue Service (Establishment) Act?

babajero:
tinubu and apc go use tax finish una this country.

Another bitter person who doesn't know what an exemption means..

It has always been Tax Tax Tax & Tax, that's what I have been hearing since APC took over