The Presidential Fiscal Policy and Tax Reforms Committee has rejected major findings in KPMG’s recent assessment of Nigeria’s new tax legislation, arguing that the firm misunderstood core policy objectives and misrepresented deliberate choices as technical gaps.
In a statement released on Saturday, January 10, via his X handle, committee chairman Taiwo Oyedele said the panel welcomed constructive feedback but contended that KPMG’s analysis was largely misplaced. “We acknowledge that a few points raised by KPMG are useful, particularly where they relate to implementation risks and clerical or cross-referencing issues,” Oyedele said. “However, the majority of the publication reflected a misunderstanding of the policy intent, a mischaracterisation of deliberate policy choices, and, in several instances, repetitions and presentation of opinion and preferences as facts.”
Oyedele stated that many issues KPMG described as “errors,” “gaps,” or “omissions” were either erroneous conclusions by the firm, misunderstandings, or matters of preference rather than policy. “While it is legitimate to disagree with policy direction, disagreements should not be framed as errors or gaps,” he added.
On concerns regarding the taxation of shares and fears of a stock market sell-off, Oyedele said such apprehensions were unfounded. “Contrary to the presumption that the new tax provisions on chargeable gains would trigger a sell-off, the fact is that the applicable tax rate on share gains is not a flat 30%,” he explained, noting that 99% of investors are entitled to unconditional exemption.
Responding to KPMG’s recommendation that the commencement of the laws align strictly with accounting periods, Oyedele argued that the proposal was too narrow. “The suggestion to set the commencement date as the start of an accounting period takes a narrow view of the complex transition issues,” he said.
He also defended provisions on indirect transfer of shares as intentional reforms aligned with global best practices. On insurance and VAT, Oyedele opposed KPMG’s interpretation, saying a specific VAT exemption on insurance premiums is technically unnecessary, and rejecting proposals to exempt foreign insurance companies, which he argued would harm local firms.
Regarding foreign exchange deductions, Oyedele maintained that the disallowance of parallel market premiumswas deliberate policy, not an error. On higher personal income tax bands for top earners, he said the rate was neither excessive nor uncompetitive, citing jurisdictions with higher marginal rates.
He further accused KPMG of factual oversights, including the claim that the new tax law should repeal the Police Trust Fund Act, noting that the provision no longer exists.
Oyedele concluded by urging stakeholders to move beyond static critiques and adopt a dynamic engagement model, emphasizing that real-world outcomes would depend on implementation, administrative clarity, and regulatory guidance. He also highlighted structural gains in the new tax framework, such as tax harmonisation, reduced corporate tax rates, expanded VAT credits, and improved incentives.
Babatunde Akinsola ✔
Babatunde Akinsola is aNaija247news' Southwest editor. He's based in Lagos and writes on the Yoruba Nation political issues, news and investigative reports
View Archive →
