- The Senate is set to pass the Tax Reform Bills, which will exempt individuals earning below N1 million per annum from income tax.
- The bills aim to tax prosperity, not poverty, and will review the Value Added Tax (VAT) revenue sharing formula to make it more equitable.
- The tax reform bills propose four major changes: the Nigerian Tax Bill, the Tax Administration Bill, the Nigerian Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.
- The bills will simplify tax processes, eliminate minimum tax for loss-making companies, and introduce a 15% effective tax rate on profits for large companies.
- Low-income earners will be exempt from paying income taxes.
The Senate is expected to pass the Tax Reform Bills today, with exemptions for individuals earning below N1 million per annum. The bills aim to tax prosperity, not poverty, and will also review the Value Added Tax (VAT) revenue sharing formula to make it more equitable.
The tax reform bills propose four major changes: the Nigerian Tax Bill, the Tax Administration Bill, the Nigerian Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill. These bills seek to simplify tax processes, eliminate minimum tax for loss-making companies, and introduce a 15% effective tax rate on profits for large companies.
The bills also aim to exempt low-income earners from paying income taxes. According to Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, anyone earning below N1 million per year should not pay personal income tax .
