How To Calculate Your Tax Rate Under New Law — Oyedele

The Chairman of the Presidential Committee connected Fiscal Policy and Tax Reforms, Taiwo Oyedele has assured Nigerians that the caller taxation laws volition lighten the load for astir citizens, contrary to wide fears.

He said astir 97 to 98 per cent of Nigerians volition either not wage taxation astatine each oregon little than they presently bash erstwhile the reforms were afloat implemented.

Speaking connected Channels Television connected Tuesday, Oyedele explained that the committee has developed a integer taxation calculator to marque it casual for individuals and businesses to find precisely however overmuch they volition pay.

“We person a taxation calculator connected our website, and you volition spot the QR codification connected the screen,” helium said. “With your phone, conscionable enactment successful your income, and it volition archer you however overmuch taxation you are paying present versus the 1 you volition wage nether the caller law. You volition spot that for the bulk of Nigerians — similar 97 to 98 per cent — they volition wage nary taxation oregon little taxation nether the caller instrumentality erstwhile it comes into effect.”

Oyedele outlined however the betterment affects Nigerians crossed income brackets:

• Low-income earners: “If you gain ₦100,000 per period oregon less, you are exempted from paying idiosyncratic income taxation from January. That is adjacent higher than the minimum wage,” helium noted.

• Middle class: “If you are a middle-class idiosyncratic who earns astir ₦1.8 oregon ₦1.9 cardinal annually, you volition spot a deduction successful the taxes you pay,” helium said.

• High-income earners: “For high-income earners and high-net-worth individuals, determination volition beryllium marginal increases depending connected the size of your income. This is however it’s done everyplace successful the satellite — to support susceptible radical and fto those who tin wage a small more, wage a small more,” Oyedele explained.

He added that the taxation betterment was besides designed to enactment businesses, peculiarly tiny and medium-sized enterprises.

“Before, the exemption threshold for firm income taxation was ₦25 million. Under this caller law, it is up to ₦100 million,” Oyedele said.

“So if your concern makes up to ₦100 cardinal a year, you don’t request to wage firm income tax. It’s zero per cent. We didn’t person this before.”

Oyedele stressed that 1 of the committee’s main priorities is tackling Nigeria’s long-standing occupation of aggregate taxation.

“If you look astatine the database of taxes and levies, determination are much than 60. These were not introduced by this government. What we are doing is asking: “Does this database marque sense? Can we repeal galore of them and harmonise the ones that are good?”

He added that nether the caller law, Nigeria could determination from implicit 60 antithetic taxes to less than 10, which helium described arsenic “a single-digit taxation strategy that volition beryllium simpler, fairer, and easier to administer.”

Oyedele besides highlighted the persistence of obsolete taxes enshrined successful the constitution. “We adjacent person bicycle tax, wheelbarrow tax, vigor and TV levies successful the constitution,” helium revealed. “For america to region them completely, we request to amend the constitution.”

The taxation betterment seat emphasised that the process was not astir introducing caller taxes, arsenic wide feared, but astir streamlining and modernising the strategy for fairness and accountability.

“This authorities has not introduced immoderate caller tax. We are repealing, harmonising, and creating transparency truthful that mean Nigerians tin recognize what they pay, and businesses tin thrive without harassment from aggregate agencies,” Oyedele said.