Nigerians earning ₦100 million and above monthly may soon face a 25% personal income tax rate if the National Assembly passes a new tax bill.
This was revealed by Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, during a breakout session at the 30th Nigeria Economic Summit in Abuja on Monday.
Oyedele emphasized the need for a more equitable tax system, advocating for a higher tax burden on the wealthy while easing taxes on lower-income earners.
He stated that the proposed changes, expected to take effect from January 2025, would shift tax responsibilities to high earners, ensuring that those making ₦100 million monthly pay up to 25% in taxes.
He also highlighted that nearly 90% of current taxpayers are individuals who should not be taxed, as they are primarily trying to survive. Under the proposed reforms, lower-income earners will be exempt from personal income tax, while middle-income earners making ₦1.5 million or less per month will see reduced tax obligations.
Additionally, Oyedele revealed plans to reduce the corporate income tax rate from 30% to 25%, aiming to support businesses. Other reforms include the reduction or elimination of VAT on essential goods and services like food, health, education, and transportation to ease the financial burden on the lower-income population.
He also addressed concerns over tax incentives, stating that unnecessary incentives harm the economy, and removing them could help businesses without affecting government revenue.
