Nigeria’s President Bola Tinubu
President Bola Tinubu don sign four new tax bills into law to mark di beginning of a new tax regime for Nigeria.
Di National Assembly bin don pass di bills afta wetin bin look like gbas gbos between di lawmakers and di Presidential Fiscal Policy and Tax Reforms Committee.
Even state govnors bin no agree wit di new tax bills for di initial stage, but afta consultations and plenty meetings wit di committee, dem later give dia support.
Hia na di new bills:
.Di Nigeria Tax Bill
.Di Nigeria Tax Administration Bill,
.Di Nigeria Revenue Service (Establishment) Bill,
.Di Joint Revenue Board (Establishment) Bill
Out of dis four new tax laws, di one wey go affect di average Nigerian more na di Nigeria Tax Bill.
“Di objective of dis Act na to provide a unified fiscal legislation governing taxation for Nigeria. Dis Act go apply throughout Nigeria to any person wey dey required to comply wit any provision of di tax laws weda personally or on behalf of anoda pesin,” according to a copy of di bill published on di website of di tax reform committee.
Also, Bayo Onanuga, di tok-tok pesin for President Tinubu, say di bill go “reduce di multiplicity of taxes and eliminating duplication, enhance di ease of doing business, reduce taxpayer compliance burdens, and create a more predictable fiscal environment”.
On Thursday, Tinubu imsef post a message for im X platform wia e tok say di new tax regime “go dey fair, transparent, and fit for a modern, ambitious Nigeria”.
Key points of di new Nigeria Tax Bill
One of di ogbonge provisions for dis new law be say pipo wey dia income no reach one million naira for one year, dem no go dey pay income tax.
Di percentage of income tax for individuals dey as follows:
N800,000 at 0%;
N2,200,000 at 15%
N9,000,000 at 18%
N13,000,000 at 21%
N25,000,000 at 23%
N50,000,000 at 25%
Bifor now, pipo wey dey earn as little as N300,000 yearly dey pay up to seven percent income tax.
See oda major tins to note for di new tax law:
.Small businesses wey dia gross turnover no reach 50 million naira inside one year, also no go dey pay company income tax.
.Corporate Income Tax go be 30%
.Income to individual wey no reach 50 million naira from compensations like wen pesin lose im job, no go dey taxable
.Value Added Tax go be 7.5%
.Essential items like food, education and healthcare go get 0% Value Added Tax
.VAT also dey exempted for rent, public transportation, and renewable energy wey give relief to low-income households who dey spend nearly 100% of dia income for dis necessities.
Some oda changes wey di new tax bills go bring include:
.Di National Revenue Service go replace di Federal Inland Revenue Service, while di Joint Revenue Board go replace di Joint Tax Board
.VAT sharing formula go be 50% to state goments, 35% to local goments and 15% to di federal goment.
.For di share wey belong to di state goment, di sharing formula na 50% based on equity, 30% based on derivation and 20% based on consumption.