Date: November 12, 2025 | Source: Hotgist9ja News
The government has unveiled a new set of tax measures aimed at boosting national revenue and improving economic stability. The new fiscal plan introduces fresh taxes on key sectors including transportation, energy, and investments. Here’s a breakdown of each tax and what it means for individuals and businesses.
✅ 7.5% VAT on Flight Tickets
Travellers will now pay an additional 7.5% Value Added Tax (VAT) on all flight tickets. The VAT will be added to both local and international fares. Airlines are required to collect this charge from passengers and remit it to the government.
For example, if a flight ticket costs ₦100,000, an extra ₦7,500 will be added, bringing the total to ₦107,500. This means domestic and international air travel will become more expensive for passengers.
✅ 15% Import Duty on Fuel
A new 15% import duty has been placed on all imported fuel products. Importers will pay this charge at entry points, and it is expected to raise pump prices as companies pass on the extra costs to consumers.
The duty aims to encourage local refining and reduce dependence on foreign fuel imports. However, the immediate impact could lead to higher transportation and logistics costs nationwide.
✅ 30% Capital Gains Tax
Investors will now pay a 30% tax on profits made from the sale of assets such as real estate, company shares, or business ownership stakes. This move targets high-income earners and aims to generate revenue from wealth-based transactions.
For example, if an investor makes ₦2,000,000 profit from selling a property, ₦600,000 (30%) will be deducted as Capital Gains Tax.
✅ 10% Withholding Tax
Payments for services, consultancy, contracts, interest, and dividends will now attract a 10% withholding tax. The tax is deducted at source before payment is made and remitted to the tax authorities. It affects freelancers, contractors, and small business owners who depend on direct service payments.
✅ 5% Fuel Consumption Tax
A new 5% Fuel Consumption Tax has also been introduced. This means every litre of fuel purchased will now attract an additional 5% levy. The aim is to create a sustainable fund for road maintenance and energy infrastructure, though it may further increase transportation costs for citizens.
✅ 15% VAT by 2028
According to government plans, VAT rates will gradually increase from 7.5% to 15% by 2028. The goal is to align Nigeria’s tax system with international standards and expand the tax base. However, businesses and consumers are expected to feel the impact if income levels and job creation do not grow at the same pace.
Economic Impact
These combined tax measures will affect different sectors of the economy. Transport and logistics companies will face higher operational costs, while individuals will see an increase in living expenses due to rising fuel and service charges.
Experts warn that while the measures may help boost government revenue, they could also fuel inflation and reduce purchasing power unless balanced with supportive policies and improved infrastructure spending.
Summary
- 7.5% VAT on flight tickets – Higher airfares for travellers.
- 15% import duty on fuel – Possible increase in fuel pump prices.
- 30% capital gains tax – Reduced investment returns.
- 10% withholding tax – Impact on freelancers and contractors.
- 5% fuel consumption tax – Higher transport costs.
- 15% VAT by 2028 – Gradual increase in consumer taxes.
Bottom Line: The new tax reforms are designed to boost revenue collection, but they will also test the resilience of consumers and businesses. Nigerians are advised to plan budgets wisely and track official updates as implementation begins.