All Incomes Will be Taxed No Matter the Source, Says Tinubu's Tax Committee
- Under the new tax reform, Nigerians will have to pay taxes irrespective of the source of income, according to President Tinubu's tax committee
- Taiwo Oyedele noted that the government will also be aggregating data to investigate illicit funds and questionable income
- He said this would reduce corruption, create a level playing ground for all Nigerians, and grow the economy
Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience and a deep understanding of Nigeria's corporate sector and emerging trends in the fintech space.
Nigerians will be required to pay taxes on all income under the new tax reforms, regardless of the source of income.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, stated this live on a Twitter space titled "Tax Reform Bills: Clarifying the sticky issues."
Oyedele was responding to a question about people with questionable income sources when he said that the reform bill has provisions that mandate all Nigerians to pay tax regardless of the source of their income.
Source: UGC
He said;
“Once we find that you have revenue, including from international data that we are going to be receiving, you first have to pay the tax”.
Investigating illicit funds
Mr Taiwo Oyedele explained on Twitter Space, that after the income has been taxed, the government will now take steps to investigate the source of income.
He said;
“If I find money that you can’t explain, I collect the tax first, and then I come back to you to say, by the way, where did you get the money from.”
He added that this would be the best way to tackle corruption and illicit cashflows. Recall that the Tax Reform bill requires all employees to file all incomes for the period at the end of the year, whether from their employer or not.
Mr Taiwo Oyedele noted further that starting in 2025, people will be able to self-declare their sources of income, after which the government will use aggregated data to investigate those with questionable incomes.
He said;
“This time around, there is going to be data and everybody will know its not a joke. We are going to write you and tell you that this is how much you have in your account, the number of bank accounts you have, how much money you spend on your payment card, the money you have in investment account, and asset management, how many times you travelled abroad, etc. These are things already going on in developed countries for years, so we are just trying to be at par with the rest of the world.”
He added that the government is not trying to tax people more but to grow the economy and create a level playing ground for all.
90% of workers will pay less taxes
In related news, Legit.ng reported that more than 90% of workers in Nigeria will pay less taxes under the tax reforms.
In his explanation, Oyedele showed how the tax reform bills provide relief for people earning up to N1 million per annum, so they do not have to pay any income taxes.
Oyedele also showed how all workers earning below N5 million monthly will pay less taxes under this bill.
He said these workers account for over 90% of the workforce in Nigeria and will be paying less. Only those who earn above N5 million will be required to pay more taxes.
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Source: Legit.ng
