New tax laws won’t trigger automatic bank deductions – NRS

The Nigeria Revenue Service (NRS) has assured Nigerians that the new tax reforms do not empower authorities to automatically deduct money from personal bank accounts, urging taxpayers to understand the laws and embrace voluntary compliance.

The State Administrator for Jigawa, Kano and Katsina, Abdullahi Samaila, gave the assurance at an NRS sensitisation and enlightenment programme in Kano, with the theme, “Driving Voluntary Tax Compliance Through Tax Reforms Awareness.”

Samaila said the reforms had generated concerns among individuals, businesses and state governments over bank transactions, taxation of family transfers and loans, value-added tax (VAT), and the possible impact on small businesses.

He said the concerns were understandable, noting that taxpayers wanted assurances that their money would remain safe, their businesses would not be unnecessarily burdened, and governments would continue to receive resources to provide essential services.

“Certainly, there are practical reasons for greater confidence in the new tax regime,” he said, adding that tax collection and recovery must follow the applicable laws and procedures.

The NRS official also clarified that the standard VAT rate remained 7.5 per cent, while urging taxpayers to distinguish between money received as loans and actual business income.

He explained that a trader who received a loan of N500,000 should not automatically have the amount treated as sales or profit, stressing the importance of keeping proper records and evidence to establish the nature of transactions.

Samaila said the tax reforms would be better understood if taxpayers received clear and practical explanations of their obligations, applicable reliefs, record-keeping requirements and channels for seeking assistance.

He outlined key areas of the sensitisation programme, including tax provisions affecting companies, individuals and businesses, practical steps towards voluntary compliance, and measures to address challenges confronting taxpayers.

According to him, taxpayers should register appropriately, maintain accurate records, reconcile transactions, file returns, pay applicable taxes on time and respond to official correspondence.

He also called on participants to identify difficulties they encountered, including confusing tax guidance and challenges with digital processes, to enable the service to develop practical solutions.

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

“Understanding builds confidence. Clear procedures make action clearer and easier. Clear and responsive services help sustain trust,” he said, urging participants to ask questions and share their experiences to strengthen voluntary tax compliance.

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