The Presidential Fiscal Policy and Tax Reforms Committee has issued a strong rebuttal to KPMG’s analysis of Nigeria’s new tax laws, labelling most criticisms as misunderstandings of deliberate policy choices rather than genuine flaws.In a statement at the weekend, the committee said it welcomed useful input on implementation risks and clerical issues but accused the firm of framing preferences as facts.
“The majority of the publication reflected a misunderstanding of the policy intent, a mischaracterisation of deliberate policy choices, and, in several instances, the repetition of opinions and preferences as facts,” the committee stated.“A significant share of KPMG’s flagged “errors, gaps, or omissions” stems from the firm’s own missteps or overlooked context,” the committee noted.
It stated that while it is legitimate to disagree with policy direction, disagreements should not be framed as errors or gaps, urging direct engagement like other firms for clarifications.On share gains taxation, which KPMG tied to potential stock market sell-offs, the committee clarified: “Contrary to the presumption that the new tax provisions on chargeable gains would trigger a sell-off on the stock market, the fact is that the applicable tax rate on share gains is not a flat 30 per cent. The tax framework is structured from 0 per cent to a maximum of 30 per cent, which is set to reduce to 25 per cent. Furthermore, a significant majority of investors (99 per cent) are entitled to unconditional exemption, with others qualifying subject to reinvestment.”It said KPMG proposals risking reform goals face rejection, including exempting foreign insurers from Nigerian-risk premiums, which would disadvantage locals: “This would create an unfair and harmful competitive disadvantage for local firms in their own market.
“By removing the tax subsidy, the policy aims to reduce incentives for round-tripping and redirect legitimate FX demands to the official market. This is policy congruence, not an error.” VAT-linked deductibility enforces compliance. It removes the advantage that some taxpayers previously enjoyed by patronising suppliers who evade
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