The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has revealed that a new tax bill under consideration by the National Assembly aims to reduce tax obligations for low and middle-income earners, while higher-income individuals will face increased rates.
Speaking at a breakout session during the ongoing 30th Nigeria Economic Summit (NES) in Abuja, Oyedele said, “If you earn N100 million a month, we’re taking up to 25 percent from you as a rich person. That’s because we need to balance the books.”
He further clarified the tax reforms, explaining that middle-income earners making N1.5 million or less per month would see reduced taxes, while higher earners would experience incremental increases, with the highest rate reaching 25 percent. “Lower-income earners would be fully exempt from personal income tax,” Oyedele added.
The reforms also propose significant benefits for businesses, as Oyedele pointed out: “Today, whatever VAT you pay on assets—whether you’re building a factory, buying a laptop, or vehicles—you bear it. This increases your cost. Once our reforms are implemented, you get the credit back 100 percent on services and assets.”
If the bill is passed and signed into law, the new tax policies are expected to take effect by January 2025. Corporate income tax rates could also drop from 30 to 25 percent.
- Tags: Reforms, Taiwo Oyedele, Tax
