The chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has moved to clarify widespread misconceptions about Nigeria’s new tax laws, assuring citizens that the reforms are not designed to punish anyone but to make the system fairer and more efficient.
Speaking at a meeting with editors in Lagos, Oyedele said the new framework aims to fund government in a more organized and transparent manner while easing the burden on low-income earners.
“It’s in the interest of society for the tax system to work,” he explained.
“That way, government is funded in an orderly manner.”
He dismissed rumours that the new laws are targeting previously untaxed groups, including sensational claims involving sex workers.
According to him, the reforms represent gradual progress toward a fairer and simpler tax system.
Oyedele also announced a key relief for workers: from January 1, 2026, anyone earning the national minimum wage or less will no longer pay income tax, a policy that will remain valid regardless of any future wage increases.
Clarifying another major issue, Oyedele said the widely discussed ₦800,000 tax exemption applies to net income , after deductions such as pension, insurance, and rent reliefs, rather than gross earnings.
However, he acknowledged that informal sector workers, such as traders and transporters, may not experience immediate relief.
He explained that harmonizing local levies across markets and transport unions will require constitutional amendments, which are unlikely to be completed before the new tax year.. . Continue..Reading. .
The new tax laws are expected to take effect at the start of the new year, with the government promising a more orderly, transparent, and citizen-friendly system that funds development without worsening economic hardship.If You’re Reading From Phoenix Click On Read Original at the top To Read Full Article
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