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The Federal Government has ensured the Nigerians that its tax reform laws just issued will not increase the financial burden for citizens, in particular low income earnings and small businesses.
The president of the tax policy committee and the presidential tax reforms, Taiwo Oyedele, gave the certainty on Friday in Lagos during an interactive session with journalists, influencers on social media and public analysts.
Oyedele said that clarification became necessary on the basis of those he described as “incorrect and uninformed deliberate analyzes” of the reforms.
According to him, the measures were designed to make the Nigeria tax system simpler, more fair and more suitable for companies, while guaranteeing that poor and medium earnings are protected from unnecessary difficulties.
“From the beginning, our objectives have been clear: to reduce the tax burden on the masses, harmonize and simplify the tax rules and create a competitive system at a global level. Our approach is focused on people, focusing on growth and efficiency,” he said.
Speaking of the key characteristics of the new tax laws, which were; Personal income tax; VAT Solievi; Tax identification numbers; Reliefs of the informal sector; and fiscal harmonization.
Explain on personal income tax, Said Oyyedele The Nigerians who earn the national minimum wages will not pay any tax, while the average earnings will pay less.
He added “only 3% higher than high -income earnings will be taxed up to 25% of their income, a rate of less than 35% of Ghana and 45% of South Africa”.
In VAT relets, Oyyedele said, food, education and health care are taxed at 0%, while rents and transport remain exempt.
According to him, small businesses are not required to charge VAT.
On tax identification numbers (TIN), he said that it is mandatory only for general accounts from income or business, not for personal savings.
Oyedele stressed that the affluent account would not have been automatically taxed.
Speaking of informal relief relief, Oyyedele said that small companies with an annual turnover of N100 million or lower are exempt from the income tax of companies, by VAT and from withholding to the source.
In case of tax harmonization, the president revealed that over 60 different withdrawals will be reduced to less than 10 to relieve compliance and stop multiple taxation.
Oyedele added that some controversial withdrawals introduced by previous governments had been demolished, including the 5% withdrawal on transmission and data time, the computer security sampling on bank transfers, the carbon tax on disposable plastic and excise duties on vehicles.
The tax leader supported the statements that the creators of online content, influencers and virtual resources gains have recently been aimed, explaining that these income had always been covered by the law on personal income tax.
He insisted on the fact that the reforms were “pro-person and pro-Crescita”, underlining that the companies would now have enjoyed faster tax reimbursements, minor tax rates and a planned reduction in the tax rates of the companies.
“The poor are not taxed pursuant to new laws. The average citizen will pay less, no more. Small businesses are exempt and the informal sector will benefit from incentives rather than sanctions,” he assured.
On the road to go, Oyyedele He observed that the Committee would continue to involve the interested parties and collaborate with relevant agencies to ensure the transparent and seamless implementation of the reforms.
“We work together to ensure effective implementation and position ourselves for better days in advance,” he urged.
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