• Thursday, November 14, 2024
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FG plans tax exemption for military supplies, baby products, others

VAT (1)

The Federal Government is set to introduce a bill proposing the exemption of certain essential items from Value Added Taxation, including military supplies, baby products and other locally manufactured goods.

The bill, titled “A Bill for an Act to Repeal Certain Acts on Taxation, Consolidate the Legal Frameworks Relating to Taxation, and Enact the Nigeria Tax Act to Provide for Taxation of Income, Transactions, Instruments, and Related Matters,” stipulated measures aimed at easing financial burdens on households and encouraging local manufacturing.

Among its provisions, the bill proposes the removal of Value Added Tax (VAT)  on military hardware, arms, ammunition, and locally manufactured uniforms supplied to the armed forces, paramilitary units, and other government security agencies.

Other exempted goods include locally made sanitary towels, pads, and tampons, as well as items purchased for humanitarian donor-funded projects, with donor organisations eligible to request VAT refunds.

The administration’s decision to exempt sanitary products seeks to address period poverty and improve access to affordable hygiene solutions. The proposed exemption for baby products aims to reduce the financial burden on families with young children.

The inclusion of military supplies among tax-exempt items reflects efforts to support national security by lowering operational costs for the armed forces and other security agencies.

The National Assembly is expected to begin deliberations on the bill in the coming weeks.

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