Rich Nigerians making N100 million or more per month will pay a 25% personal income tax rate if a new tax law is approved by the National Assembly, according to Taiwo Oyedele, the chairman of the Presidential Fiscal Policy and Tax Reforms Committee. In support of a more efficient and just tax system for the nation, he claimed that 90% of the existing taxpayers are individuals who shouldn’t be subject to taxes.


The Nigerian Economic Summit Group and the Ministry of Budget and National Planning organized the ongoing 30th Nigeria Economic Summit, which took place in Abuja on Monday. During a breakout session, this disclosure was made.

Achieving a balance between reducing taxes for individuals with lower incomes and requiring higher incomes to pay to government revenues is a key point Oyedele emphasized.

According to Oyedele: “If you earn N100m a month, we are taking up to 25 percent from the rich people. That’s because we need to balance the books.”


Continuing, he stated that his committee is actively striving to accomplish the aim and that the government is ready and committed to making sure the appropriate people pay taxes. He added that if the bill is passed by MPs, the suggested amendments should go into effect in January 2025.


Oyedele said that the personal income tax requirements of middle-class earners earning N1.5 million or less per month would reduce, while higher earners would face gradual hikes in their tax rates, culminating in a 25 percent tax rate. Individuals with lower incomes would not be subject to personal income tax at all.

Another goal of the revisions is to make business taxes less onerous. Oyedele had this to say: “Today, whatever VAT you (businesses) pay on assets—whether you’re building a factory, buying a laptop, or vehicles—you bear it. This increases your cost, and therefore, your pricing will go up. Once our reforms are implemented, you get the credit back 100 percent on services and assets.”

He went on to say: “People will pay tax once we decide that they have to pay. What we realize is that almost 90 percent of people who are paying taxes are those who should not have been paying in the first place.

“So that’s where we came up with the data that 97 percent of the informal sector should be formally exempted from taxes. People do not understand where we are coming from. They’re not the ones to pay taxes. They’re just trying to survive,” he added.

The fiscal policy guru gave an update on his committee’s efforts to guarantee that the correct people file taxes, stating that the team would use main data identification channels to accurately place the right group of taxpayers in the appropriate tax bracket, BrandSpur national news stories report.

Furthermore, he called the planned reduction in the corporate income tax rate from 30% to 25% “huge” for businesses. Significant tax changes also include lowering or doing away with the value-added tax (VAT) on necessities like food, healthcare, education, housing, and transportation.

The proposed reforms are intended to alleviate the financial burden that the lower-income population bears, as a significant amount of their household expenditures is allocated to these important services. He did concede, though, that not all industries would profit from lower tax rates. To maintain the government’s revenue book balance, the VAT rate would rise for other goods and services. Additionally, he emphasized that without the need for legislation, inflation has already undermined the value of people’s money by acting as a “disorderly” tax on the populace.

In response to criticisms about tax breaks and incentives, Oyedele stated that the economy is harmed by indiscriminate incentives and that eliminating them will help the business community without increasing government spending. He said: “We cannot give all the incentives you are asking for. We think the biggest low-hanging fruit is removing these incentives, and that’s exactly what we are doing,” he added. Compose Message.

SOURCE:https://brandspurng.com/2024/10/16/federal-government-to-fix-personal-income-tax-rate-at-25-for-n100-million-earners/

Toh

they'll still find a way to maneuver it and push it to common Nigerians


Ask urself how much tax waivers these politicians and their companies are getting yearly. Especially Dangote, MTN, Glo, UBA etc

Is that not too much, is taxing the citizens the only way government can generate revenue?

Sounds to me like a lazy approach.

It was in the news today that Nigerian have lithium sold for dirt cheap by locals to Chinese.

Why can't the government tap into other areas that can generate revenue but requires work.

Outsourcing
Mineral resources
Agriculture ETC

Salewa97:
Toh

Hellinus why

Extorting 25% from hardworking ppl all in d name of tax, is a crime

When God wants to punish a nation, he gives them a bad leader.

How can 90% of tax payers be wrongly taxed? Makes no sense. Everyone should pay tax no matter how small.

Buhari Media Crew should have paid 3k from their 30k as tax. Everyone should support the growth of Nigeria.

Tax! Tax!! Tax!!!

25% tax is criminal no matter how we want to justify it, especially when the government is doing little or nothing to help businesses grow or contribute directly or indirectly to the success of these individuals.

Even the rich will also cry!

No focus on human capital or infrastructural development.

No focus on cutting down cost of governance.

No focus on clamping down on corruption.

All the tax, multiple loans, revenue from other sources and supposed savings on subsidy removal..... ABSOLUTELY NOTHING TO SHOW FOR IT!

I dare anyone to mention just one thing the common man presently benefits or enjoy from the government.

It's sad, painful and pathetic.

Rubbish move as usual....

If I make #100 million, u go come collect 25 million.

Thieves

by the time we get to 2031 with all this reform Nigeria will be better than Americans una allow a renowned criminal use una presidency for retirement.una eyes go clear soon

Its only in Nigeria and some few other countries that people buy houses and cars worth over 100m and dont pay income taxes.

Dialpad:
Is that not too much

100M x 0.25

That's just N25M, you will still go home with N75M

Manage it

Hahahaha.. I swear Tpain wan finish Nigerians finish, he was sent from hell to deal with Nigerians severely.

Both tribalist and non tribalist dey buy fuel for 1200 per liter.

Both tribalist and non tribalist dey buy big loaf of bread for 2200 and so on..

I think we still need more hardship to Wake up entirely.

You thinking they are taxing just people that earn 100million and above, soon they will find a way to twist it all and even the common man who earns 10k per month will be taxed too. Everybody eyes go clear until we all shun tribalism and vote for competency.

I hope it works and properly implemented, I can perceive something good from it

This is how it is in the developed countries Nigerians want Nigeria to be like.

This is really a great Idea, it is a great way for Rich Nigerians to contribute to building the country instead of always using the money to carry Olosho and drink at the night club.

This doesn't stop the suffering

2mininuP:
I hope it works and properly implemented, I can perceive something good from it

Are you a Nigerian or you are one of the new online bots?

The way you people defend this useless government baffles me.

How much were you paid to throw away your conscience?

It would have been a great Idea but we all know what happens to the money. It will be looted as usual. . The UK is a perfect example of how tax works. Basic amenities available..

Nope that's too much .... 25 million for what na ....

Those earning that will find the loop hole, remove 50k from 100m and you are no longer in that bracket

femi4:
100M x 0.25

That's just N25M, you will still go home with N75M

Manage it

25% is crazy

Dialpad:
Nope that's too much .... 25 million for what na ....

Those earning that will find the loop hole, remove 50k from 100m and you are no longer in that bracket

You don dey give them idea already

How many people earn 100 million monthly in Nigeria

Dialpad:
Is that not too much, is taxing the citizens the only way government can generate revenue?

Sounds to me like a lazy approach.

It was in the news today that Nigerian have lithium sold for dirt cheap by locals to Chinese.

Why can't the government tap into other areas that can generate revenue but requires work.

Outsourcing
Mineral resources
Agriculture ETC

Mumu, you cannot read between the lines

Good news. We are gradually getting there

Do you wake up and call your dad an idiot while playing with his balls ?

omonla555:


Mumu, you cannot read between the lines

postbox:


SOURCE:https://brandspurng.com/2024/10/16/federal-government-to-fix-personal-income-tax-rate-at-25-for-n100-million-earners/

T. Pain on the beat

So just like that, I will relinquish my 25m out of my 100m monthly earning to the government.
Naawaaaoooo.
If to say na government train me in school, skill or gave me capital for my business I for no complain.

Akfrenzy:
they'll still find a way to maneuver it and push it to common Nigerians


Ask urself how much tax waivers these politicians and their companies are getting yearly. Especially Dangote, MTN, Glo, UBA etc

actually