Nigerians will be required to pay taxes on all income under the new tax reforms, regardless of the source of income.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, stated this live on a Twitter space titled “Tax Reform Bills: Clarifying the sticky issues.”
Oyedele was responding to a question about people with questionable income sources when he said that the reform bill has provisions that mandate all Nigerians to pay tax regardless of the source of their income.
He said;
Mr Taiwo Oyedele explained on Twitter Space, that after the income has been taxed, the government will now take steps to investigate the source of income.
He said;
He added that this would be the best way to tackle corruption and illicit cashflows. Recall that the Tax Reform bill requires all employees to file all incomes for the period at the end of the year, whether from their employer or not.
Mr Taiwo Oyedele noted further that starting in 2025, people will be able to self-declare their sources of income, after which the government will use aggregated data to investigate those with questionable incomes.
He said;
He added that the government is not trying to tax people more but to grow the economy and create a level playing ground for all.
In related news, TimesNow.com.ng reported that more than 90% of workers in Nigeria will pay less taxes under the tax reforms.
In his explanation, Oyedele showed how the tax reform bills provide relief for people earning up to N1 million per annum, so they do not have to pay any income taxes.
Oyedele also showed how all workers earning below N5 million monthly will pay less taxes under this bill.
He said these workers account for over 90% of the workforce in Nigeria and will be paying less. Only those who earn above N5 million will be required to pay more taxes.
Source: TimesNow.com.ng
