President Bola Tinubu's proposed 2024 tax reforms in Nigeria aim to modernize and streamline the country’s taxation system while addressing economic development goals. Here’s a summary of the key elements:
Unified Tax Framework: The Nigeria Tax Bill consolidates various tax laws into a single document, simplifying compliance, especially for small businesses. The Tax Administration Bill aims to reduce disputes and ensure clearer guidelines for taxpayers.
New Revenue Agency: The Federal Inland Revenue Service (FIRS) will be replaced with the Nigeria Revenue Service (NRS), a modernized body expected to improve transparency and efficiency in tax collection.
Income Tax Adjustments: Individuals earning below the minimum wage and small businesses with annual turnovers under ₦50 million will be exempt from certain taxes, supporting low-income earners and micro-enterprises.
Value-Added Tax (VAT): VAT will increase from the current 7.5% to 10% in 2025, with a gradual rise to 15% by 2030. Essential items like electricity, baby products, and humanitarian goods will remain VAT-exempt.
Corporate Tax Changes: A new 27.5% corporate tax rate is introduced for larger companies, reducing to 25% from 2026. Small firms are exempt. There’s also a 4% development levy to fund education initiatives, scaling down over time.
Excise Duty on Gaming: A 5% excise tax on lottery and gaming income will fund regulatory improvements and support national development.
Technology Integration: The reforms emphasize technology-driven tax collection and dispute resolution, including the establishment of a Tax Appeal Tribunal and a Tax Ombudsman.
The reforms aim to boost government revenue, attract private investment, and simplify tax compliance, but they have faced opposition from some stakeholders, particularly due to perceived regional disparities and implementation challenges.
1. Any business with less than N50million turnover are exempted from tax payment.
2. over 90% of workers in public and private sector will no longer pay income tax.
3. Over 82% of what low income persons consume will be VAT free.
4. scrapping over 50 nuisance tax suffered by local businesses.
5. VAT will no longer be calculated base on where the companies have their headquarters but where their goods are consume.
6. the rich to pay more tax while the poor will stop paying taxes..
7. Consumption tax collected by states will be eliminated completely.
8. FG share of VAT to reduce from 15% to 10% as states and LGAs now get 90%.
9. Those earning less than N1.7m monthly will now pay less income tax.
10. Customs, NUPRC and other govt agencies will no longer collect tax as only one Agency will be responsible for collection of all taxes in NGR.
11. Those receiving less than N9million per anum could have their income tax cut by half.
12. The bill could lead to abolition of other multiple tax laws like the stamp duty act.
13. Over 90% of small business would no longer pay profit tax.
14. Gradual increase of VAT from 10% in 2025 to 15% in 2030... With almost every goods consume by low income earners exempted from VAT.
15. Many NGR companies pay over 60 types of different tax & levies... The bill seeks to end this factor killing NGR industries.
You may not like the messengers ...But, the message is a good one .. - Gorge Udom says
| Posted: at | |
Dopybadass
fineboy77
TRENDING GISTS 
Justin Welby Steps Down As Archbishop Of Canterbury, Marks Final Day With Symbolic Ceremony
Alleged Baby Mama of Cubana Chief Priest Thanks Burna Boy for Fulfilling Promise To Support Her
FA Cup Fourth Round Draw Revealed as Manchester United Triumphs Over Arsenal
Father, Monday Elela Confesses To Killing Son, Burying Him Over Alleged Criminal Behavior in Ondo State
Nigerian Man Disrupts Ex-Girlfriend's Wedding With Shocking Revelations Of Secret Life
Nigerian Military Implements Strict Conduct Rules, Bans LGBTQ Activities, Tattoos, And Private Business