Presidential Tax Reforms Committee Clarifies New Laws, Assures Nigerians of Reliefs

The Presidential Fiscal Policy and Tax Reforms Committee has assured Nigerians that the newly enacted tax reform laws are designed to reduce burdens on ordinary citizens and businesses, not increase them.

At an interactive session with journalists and influencers in Lagos, the Committee’s Chairman, Mr. Taiwo Oyedele, said the reforms aim to simplify tax rules, harmonise multiple levies, and build a business-friendly system.

“The poor are not being taxed. Average citizens will pay less, while only the top 3% of earners will contribute more. Small businesses will enjoy full exemptions from corporate tax, VAT, and withholding tax,” Oyedele explained.

Key measures under the new laws include:

Exemption of minimum wage earners and small companies with turnover of ₦100m or less.

0% VAT on food, education, and health; rent and transport remain VAT-exempt.

Businesses to enjoy broader input credits and faster refunds. .

Over 60 different taxes and levies to be reduced to fewer than 10.

Suspension of several taxes including airtime/data levy, cybersecurity levy, and vehicle excise tax.

The Committee also clarified that a Tax ID is required only for business accounts and that inflows into personal bank accounts will not be automatically taxed.

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Mr. Oyedele urged Nigerians to rely on credible information, noting that the reforms are people-focused, pro-growth, and efficiency-driven.

The Committee promised continuous engagement with stakeholders to ensure a transparent implementation process.