“…it’s a game changer”
WETIN TINUBU TAX REFORM MEAN
1) Any business with less than N50million turnover are exempted from tax payment.
2) Over 90% of workers in public and private sector will no longer pay income tax.
3)Over 82% of what low income persons consume will be VAT free.
4) Scrapping over 50 nuisance tax suffered by local businesses.
5) VAT will no longer be calculated base on where the companies have their headquarters but where their goods are consume.
6) The rich to pay more tax while the poor will stop paying taxes.
7) Consumption tax collected by states will be eliminated completely.
8) FG share of VAT to reduce from 15% to 10% as states and LGAs now get 90%.
9) Those earning less than N1.7m monthly will now pay less income tax.
10) Customs, NUPRC and other govt agencies will no longer collect tax as only one Agency will be responsible for collection of all taxes in NGR.
11) Those receiving less than N9million per anum could have their income tax cut by half.
12) The bill could lead to abolition of other multiple tax laws like the stamp duty act.
13) Over 90% of small business would no longer pay profit tax.
14) Gradual increase of VAT from 10% in 2025 to 15% in 2030… With almost every goods consume by low income earners exempted from VAT.
15) Many NGR companies pay over 60 types of different tax & levies. The bill seeks to end this factor killing NGR industries.
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The Bill is a game changer – Ada
If the Tax Reform Bill becomes law, every state will be compelled to chart its own path to economic growth.
That Bill is a game changer, which will push states to build self-sustaining economies. For the Southeast, it’s a call for visionary leaders with macroeconomic expertise.
National Assembly should pass that bill cos it’s time to revive the Eastern Corridor as a major trade route with functional railways and a seaport, attracting local and international industries, agriculture, and trade hubs etc, perfectly positioned for seamless import and export activities.
This reform holds the key to unlocking untapped potential. The Southeast will rise as a model of innovation, enterprise, and economic excellence. I trust my people on this. Our other name na survie!
Pass the Tax Reform Bill! Happy New Week – @Ada Anambra
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A nationwide consultation is needed -Nonso
I wish you understand that bill page by page and the long term effect. It is not yet uhuru!
Why the unusual rush, same way we saw they changed the national anthem.
A nationwide consultation is needed, democracy is a government of the people by the people and for the people. – @Nonso
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Nigeria must get it right – Cyno
Most of the time I wonder how we got here. What do you call consultation? What other consultation is greater than public hearing? If you have any issue against the bill, present it at the public hearing so that experts can put you right. Nigeria must get it right this time. – @cyno Monday
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Let’s embrace what is good -Seyione
Rush? After engaging Tax experts from various sectors and every part of the county which lasted for a year, you’re now tagging it Rush.. Na wa oo… Let’s separate sentiment from this matter and adopt what is good for this nation. – @Seyione of Ekiti
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Easterners can’t be sitting at home every Monday, and be expecting same allocation with state that working hard every Monday.
The bill should speedily passed, and let everybody reap from their sweat of labour. – @ Chapy De
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In summary
The proposed legislation includes four key bills:
- Nigeria Tax Bill: Harmonizes major taxes including corporate income tax, personal income tax, and VAT.
- Nigeria Tax Administration Bill: Establishes a framework for tax management.
- Nigeria Revenue Service Bill: Replaces the Federal Inland Revenue Service with a new agency to improve revenue administration.
- Joint Revenue Board Bill: Expands the Joint Tax Board’s mandate and introduces a tax ombudsman.
The reforms target multiple economic objectives, including:
- Empowering youth through digital economy opportunities
- Boosting exports with zero-rated VAT and incentives
- Supporting small businesses with tax exemptions
- Providing relief for workers and households
Key highlights include:
- Minimum wage earners will be exempt from personal income tax
- Over 50 nuisance taxes will be repealed
- Corporate income tax rates will reduce from 30% to 25%
- VAT on essential items like food, education, and healthcare will be 0%
- Businesses will benefit from input VAT credits
- A new tax ombudsman will protect taxpayer interests
The reforms aim to create a fairer tax system by:
- Implementing progressive taxation
- Ensuring more equitable VAT revenue distribution among states
- Reducing tax burden on low-income earners
- Attracting local and foreign investments
- Fostering economic growth and equity
The proposed changes seek to alleviate the rising cost of living and create a more business-friendly environment, ultimately supporting Nigeria’s economic development.
…to be continued