The tax reforms of Tinubu, more transformative for the Nigerian economy of any political deployment in a generation, says Inci – Thage

The Independent Media and Policy Initiative (IPI) said that the new tax reforms will decrease in the history of the country as the main legacy of President Bola Tinubu at the Nigerians.

This according to the group is due to the potential of the new laws to transform the Nigerian economic space more than any political deployment into a generation, if well implemented.

The president, dr. Omoniyi Akinsiju, Impi, observed that it came to that conclusion after a superficial look at the Nigeria Tax Act (NTA) 2025.

He said: “In the tradition of objective analysts, we examined the new tax laws in the framework of political contextuality, realism and relevance. Our verdict is that the federal administration of Nigeria, led by President Tinubu, gave the country an organ of tax policies related to potential with the potential to transform the Nigerian economic space more than any political distribution into a generation.

“On the basis of our evaluation, the four tax documents – the law on Nigeria Tax (Fair Taxation), the Nigeria Tax Administration Act, the Nigeria Revenue Service (ESTABLISHMP) ACT and the law on the joint of revenue (factory) – satisfy all the tax conditions required for an accelerated and inclusive economic growth.

According to him, according to the rendering of the group’s accounts, these tax reforms, as reflected in the substance of the four tax acts, together with the removal of subsidies for the fuel and harmonization of the windows of transactions in foreign currency, are at the center of the coordinated effort to restore the Nigerian economy.

He said the ideal tax system increases essential revenues without excessive government loan. It should also do it without discouraging economic activities or deviating too much from tax systems in other countries.

“On this count, we submit that president tinubu has accumplished multiple fiscal objectives in a single strategic maneuvre, consolidating and reshaping nigeria’s fragmented and complex tax architecture and emphasising rebuilding trust in the system,” hed, adding that,

“The new tax regime promotes tax conformity through the equity and positions of the country as an attractive destination for national and foreign investments. In this light, Nigeria has just started its long -standing crystallization of its economic Renaissance.”

The group also stressed that the new tax law has several provisions aimed at enhancing national and foreign investments.

“With the implementation of the laws on the Nigerian tax starting from January 2026, the affluent of foreign investments in the country are reinforced. A greater thrust in this regard is the adoption of the minimum tax rate (ETR) in the law on Nigerian taxes and other tax measures.

“While the rate of the income tax of normal company in a large company in Nigeria is 30 percent of the company’s profit, with the adoption of the ATR, the Nigerian companies that are members of a multinational group with an aggregate group turnover of 750 million euros and beyond or have an annual turnover of 50 billion naira and beyond will now be the subject of a minimum rate (ETR) net.

“The goal is to avoid the double taxation of dividends and earnings or unrealized losses. This reduction in tax rates and clarity around double taxation for multinational companies will undoubtedly influence the flow of global capital in Nigeria.

“This is added to introducing the incentive of economic development, which replaces the” Pioneer “tax holiday incentive. This incentive introduces a tax credit of 5% per year for 5 years on capital expenses purchased by admissible companies within 5 years, starting from the production date.

“The law also provides that if a company has unused tax credits or qualifying capital expenses, it can carry them on for 5 years. The Edis effectively reduces the tax obligation of the company’s income for a period of five consecutive years if it is part of a multinational group. Another attraction for global entrepreneurial capital is the prospect of establishing a residence in Nigeria.

“In addition, the tax exemption threshold for the sale of shares of the company in Nigerian company has been increased to 150 million Naira (from 100 million Naira) in every 12 consecutive months, provided that the earnings did not exceed 10 million Naira. This is another business of business.

“The overall tax structure, including the progressiveness of income taxes, can influence the distribution of income and aggregate demand, which affect economic growth. This is substantially reflected in the NTA 2025. Section 56 of the law establishes that small companies with a gross turnover of 100 million naira or not per year and in total physical activities not exceeding 250 million Naira now enjoy the hundred..

“This is an extension of the threshold for having benefited from the companies of 25 million Naira in turnover pursuant to 2020 Finance Act to 100 million Naira in an actual 2025. This higher capture threshold plus Nigerian companies, in particular those considered medium -sized, in the categorization companies that are no longer required to pay for the income tax of companies (cit).

“The deepest arrangement of the year 2025 is the zero tax tax on the personal income of the Nigerians who earn between 0 and 800,000 naira per year. Nothing demonstrates the progressive nature of the new tax laws of this.

“We emphasize that this exposure of the progressiveness of income taxes, as captured in an actual 2025, will affect the distribution of income and aggregate demand, thus guiding economic growth. Now we can imagine the impact of the available income available for about 5,800,000 wage workers in this category”, added the declaration of politics.

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