Taiwo Oyedele, chairman of the presidential fiscal coverage and tax reforms committee, says Nigeria’s new tax legal guidelines will take impact on January 1, 2026, as scheduled, dismissing requires a delay.
Oyedele spoke after assembly President Bola Tinubu in Lagos forward of the implementation of the Nigerian Tax Act (NTA) and the Nigeria Tax Administration Act (NTAA). The delegation included Zacch Adedeji, chairman of the Federal Inland Income Service (FIRS).
He mentioned the federal government wouldn’t droop the reforms, arguing that they’re designed to cut back the tax burden on most Nigerians and stimulate financial progress.
“About 98 per cent of employees will both pay no PAYE tax or pay much less,” Oyedele mentioned. “For companies, 97 per cent of small enterprises will probably be exempt from company earnings tax, VAT and withholding tax, whereas giant firms can even see reductions in what they pay.”
In accordance with him, the reforms goal to advertise progress, inclusion and shared prosperity, reasonably than improve hardship.
Learn Additionally: Nigeria’s tax reforms unlikely to trigger immediate price increases
“The entire concept is to develop the financial system in a good and sustainable manner,” he mentioned. “That’s the reason we’re assured and looking out ahead to January 1, 2026.”
Oyedele mentioned the federal government expects income to rise over time, not by means of increased tax charges however by means of financial growth and higher compliance.
“When the financial system grows, the tax base expands,” he mentioned. “Individuals pay not as a result of charges are increased, however as a result of extra folks and companies are taking part.”
He added that the reforms have eliminated what he described as wasteful and distortionary tax incentives, whereas additionally strengthening tax tradition and compliance.
“If individuals who weren’t paying earlier than start to pay — and these usually are not low-income earners — society good points each income and equity,” he mentioned.
The feedback come amid issues raised by labour unions and civil society teams over the brand new tax regime. Earlier this week, Oyedele urged Nigerians to await the end result of a legislative evaluation into alleged discrepancies within the gazetted legal guidelines.
The management of the Senate and the Home of Representatives has directed the clerk of the Nationwide Meeting, Kamoru Ogunlana, to work with related govt companies to re-gazette the tax legal guidelines the place crucial.
