A lot of misinformation is circulating about the tax reforms taking effect from January 2026. Some individuals and media platforms are pushing fear instead of facts. Here’s the truth they’re not telling you:
What Actually Changes in 2026
1. For 98% of income earners:
You will pay less tax or no tax at all.
2. For households:
Essential items and services become cheaper because VAT will be removed from food, education, and healthcare.
3. For small businesses (SMEs): 0% corporate tax
Exempt from VAT entirely
This frees up capital for growth and jobs.
4. For large companies: Lower corporate tax rates
VAT credits on their input costs
This reduces operating expenses and improves competitiveness.
Bottom line: Individuals, SMEs, and large companies all enjoy a reduced tax burden.
So when you hear “this is not the right time for tax reform,” ask:
Why postpone a reform that reduces the taxes Nigerians are already paying?
Common False Claims — and the Facts
❌ “New taxes are coming.”
False. No new tax was introduced.
❌ “Government will start debiting your bank account.”
False. No such provision exists.
❌ “Remittances and gifts will be taxed.”
False. They are not taxable.
❌ “Online earners are the target.”
False. Nothing in the law singles out online income.
❌ “Inflation will worsen.”
False. Removing VAT on essentials actually reduces cost pressures.
Misinformation spreads fast—especially when it is sensational or convenient for the creator. Sadly, many people accept it without verifying.
A Real Example
I recently met a man who refused to take up rights issues from his bank because someone told him he would be charged 30% Capital Gains Tax.
In reality, he was fully exempt—and he has now lost a financial opportunity because of false information.
This is what low tax awareness does: it makes people vulnerable to misleading commentary.
A Simple Test
Whenever someone says: “New taxes are coming,”
→ Ask them: Which one? Name it.
If they say: “Taxes will go up,”→ Ask: Which tax? For who?
Facts matter more than fear.
Get the Full Breakdown
Watch the full explanation here and share with anyone who deserves clarity, not panic: youtu.be/qjXdIHYO8Tg
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