NRS allays fears over bank deductions under new tax reforms

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Read History Go to My Account Log Out Enhanced by Google Uncategorized NRS allays fears over bank deductions under new tax reforms Ismail Abdullahi, state administrator of the Nigeria Revenue Service (NRS) for Jigawa, Kano and Katsina states, has assured taxpayers in

Listen to this article Share Ismail Abdullahi, state administrator of the Nigeria Revenue Service (NRS) for Jigawa, Kano and Katsina states, has assured taxpayers in the region that obtaining a Tax Identification Number (Tax ID) does not automatically authorise deductions from their personal bank accounts.

Abdullahi said sustained engagement with individuals, businesses and other stakeholders was necessary to address misconceptions about the new tax reforms, improve public understanding and encourage voluntary compliance.

He spoke at a one day stakeholder engagement on tax compliance, held Tuesday, in Kano, where concerns were raised about the implications of the reforms for personal finances, business operations and revenue allocations to state governments.

According to him, taxpayers have expressed concerns about whether money received from relatives or borrowed for business purposes would be treated as taxable income, whether banks would automatically deduct taxes from their accounts and whether the new requirements would impose additional burdens on small businesses.

Abdullahi acknowledged that the concerns were understandable, noting that individuals and businesses needed clarity on how the reforms would affect their finances and operations.

He explained that Tax ID requirements did not, in themselves, permit automatic deductions from personal bank accounts, adding that any tax recovery must follow applicable legal provisions and procedures.

He also clarified that the standard Value Added Tax (VAT) rate remained 7.5 percent.

Abdullahi said clear and practical explanations of the reforms would help taxpayers distinguish between actual legal requirements and misconceptions, thereby reducing anxiety and preventing compliance errors.

“Putting taxpayers first means making these explanations available, speaking to you respectfully, and helping you understand how to meet your obligations,” he said.

He urged taxpayers to familiarise themselves with the obligations applicable to their businesses, the reliefs and incentives for which they qualified, the records they were required to maintain and the channels available for seeking assistance.

He added that taxpayers should understand their rights and the appropriate procedures for challenging decisions they considered unfair or incorrect.

As part of the stakeholder engagement, participants were scheduled to receive three presentations covering different aspects of the tax reforms.

The first, titled Tax Reforms: What Taxpayers Need to Know, was designed to explain provisions affecting companies, individuals and other relevant categories of taxpayers, including applicable reliefs and incentives.

The second presentation was expected to provide practical guidance on tax compliance, including registration, record-keeping, reporting transactions, filing returns, making payments when due and responding to official correspondence.

The third presentation, focusing on closing the tax gap and addressing taxpayer challenges, was intended to identify obstacles to compliance and explore practical solutions to improve the tax system.

Abdullahi said the engagement would enable the service to hear directly from taxpayers about difficulties they encountered, including complicated procedures and challenges in accessing assistance.

He said the NRS was responsible for providing clear guidance, consistent treatment and accessible support, while taxpayers were expected to provide accurate information, maintain proper records and fulfil their obligations within stipulated periods.

He encouraged participants to ask questions, share their experiences and identify areas requiring clarification, saying the objective was to ensure that taxpayers left the engagement better informed and more confident about complying with the new tax requirements.