Findings by Saturday PUNCH have shown that some businesses and traders across the country are increasing the prices of goods and services, citing the implementation of newly introduced tax laws, despite government assurances that the reforms would not lead to immediate cost increases.
The Federal Government had stated that the tax laws, which took effect in January, were designed to reduce multiple levies, stimulate economic growth and ease the burden on businesses and consumers. However, investigations reveal that some operators are attributing recent price hikes to Value Added Tax and other charges linked to the reforms.
The tax overhaul followed President Bola Tinubu’s assent to four tax reform laws in June, establishing the Nigeria Revenue Service as a single authority overseeing tax administration. The laws exempt basic food items, medical products, educational materials, petroleum products, electricity services and small businesses with annual turnover below N100m from VAT.
Despite these exemptions, traders and business owners in several states confirmed that wholesalers and service providers had increased prices. A Lagos based retailer said she was compelled to raise prices to offset perceived tax obligations, warning that failure to do so could affect profitability.
Similarly, car dealers and service providers said they were adding VAT charges upfront to avoid unexpected tax liabilities at the end of the year.
Public complaints have also flooded social media, with Nigerians alleging arbitrary charges on fuel purchases, POS transactions, restaurant bills and digital savings platforms.
Reacting to the development, the President of the Association of Small Business Owners of Nigeria, Femi Egbesola, described the practice as unfair and exploitative, stressing that taxes should be paid from profits and not transferred to consumers.
The Nigeria Revenue Service dismissed claims of tax increases, insisting there was no justification for price hikes and warning businesses against exploiting Nigerians under the guise of tax compliance.
