The new proposal consists of four bills: The Nigerian Tax Administration Bill 2024 HB, number 1756, The Nigerian Revenue Service (Establishment) Bill 2024, number 1757, The Joint Revenue Board of Nigeria (Establishment) Bill 2024 Bill, number HB. 1758, and The Nigerian Tax Bill HB, number 1759.
The bills, according to the committee, are aimed at reforming the Federal Inland Revenue Service (FIRS) in general, create a standard process for the consistent and effective administration of tax laws to promote tax compliance, prevent tax evasion, maximise tax revenue, and create a framework for cooperation between the federal and state revenue authorities, particularly with regard to information sharing.
In this article Gistcore media highlight 15 Key Points in the Newly Proposed Nigerian Tax Reform Bill:
1: Businesses with less than N50 million turnover are exempted from tax payment.
2: Over 90% of workers in public and private sector will no longer pay income tax.
3: Over 82% of what low income persons consume will be VAT free.
4: Scrapping over 50 Taxes imposed on local businesses.
5: VAT will no longer be calculated base on where the companies have their headquarters but where their goods are consume.
6: The rich to pay more Taxes while poor pay lesser.
7: Consumption Tax collected by states will be eliminated completely.
8: FG share of VAT to reduce from 15% to 10% as states and LGAs now get 90%.
9: Those earning less than N1.7m monthly will now pay less income tax.
10: Customs, NUPRC and other govt agencies will no longer collect tax as only one Agency will be responsible for collection of all taxes in Nigeria.
11: Those receiving less than N9 million per annum could have their income tax cut by half.
12: The bills could lead to abolition of other multiple tax laws like the stamp duty act.
13: Over 90% of small businesses would no longer pay profit tax
14: Gradual increase of VAT from 10% in 2025 to 15% in 2030… With almost every goods consume by low income earners exempted from VAT.
15: Many Nigeria companies pay over 60 types of different taxes & levies, the bills seek to end this factor killing NGR industries.
For more details about the tax reform bill and why northerners are angry, watch the video below:
Below is the Tax Reform infographic:
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