The Presidential Fiscal Policy and Tax Reforms Committee has rejected criticisms by KPMG over Nigeria’s newly introduced tax laws.
Gatekeepers News reports that in a statement on Saturday, the committee said the firm misunderstood the policy direction and intentions behind the reforms.
The committee said most of the issues raised by KPMG in its recent newsletter were based on “a misunderstanding of the policy intent” and a “mischaracterisation of deliberate policy choices” made by the government.
KPMG had claimed the new tax laws contain errors, inconsistencies, gaps, omissions, and lacunae that require urgent review to ensure the laws achieve their objectives. The firm argued that some provisions could create uncertainty for taxpayers and investors if not amended.
Responding, the committee said many of the concerns described as errors, gaps, or omissions were either mistakes and invalid conclusions drawn by KPMG or matters the firm failed to properly understand.
It added that some issues arose because KPMG ignored the wider context of the ongoing fiscal reforms and instead preferred alternative outcomes to the choices intentionally made in the laws.
The committee noted that some of the points raised were clerical or editorial matters that had already been identified internally during the drafting process.
It stressed that such issues do not affect the core objectives of the reforms, which are aimed at widening the tax base, improving compliance, simplifying administration, and boosting government revenue.
The committee said, “We welcome all perspectives that contribute to a shared understanding and successful implementation of the new tax laws.”
“We acknowledge that a few points raised by KPMG are useful, particularly where they relate to implementation risks and clerical or cross-referencing issues. “
“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.”
The committee also said KPMG should have engaged directly with it, as other professional firms have done, rather than presenting policy disagreements as technical errors or gaps.
It added, “It is equally important to distinguish between policy choices designed to achieve the reform objectives and proposals that merely represent a firm’s preference.”
Addressing concerns about capital market taxation, the committee clarified that the new tax rules on share gains will not impose a flat 30 percent tax, contrary to KPMG’s claims.
It explained that applicable rates range from 0 percent to 30 percent and are expected to reduce to 25 percent, while about 99 percent of investors qualify for unconditional exemptions.
The committee further rejected KPMG’s call for a single commencement date for the new tax laws, saying such an approach oversimplifies complex transition issues.
According to the committee, a single start date would fail to properly address ongoing transactions, multiple accounting periods, audits, and assessments across the economy.
