Military pensioners, veterans exempted from new tax law – MPB

…Pensions, gratuities stay tax-free

By Kingsley Omonobi

The Military Pensions Board (MPB) has assured retired subject unit that their pensions, gratuities, and decease benefits stay afloat exempt from taxation nether the recently enacted Nigerian Tax Administration Act (NTAA) 2025.

The clarification follows concerns raised by veterans aft President Bola Tinubu signed the NTAA into instrumentality connected May 22, 2025. The law, which introduces wide-ranging reforms, is scheduled to instrumentality effect from January 1, 2026.

One of the cardinal provisions of the NTAA is the mandatory usage of a Tax Identification Number (TIN) for each fiscal transactions, including banking, insurance, and concern services. The instrumentality besides introduces progressive taxation connected yearly idiosyncratic incomes supra ₦800,000.

In an advisory issued to the veterans’ community, some astatine location and abroad, the MPB emphasized that the caller rules bash not impact subject pensions oregon related entitlements.

“All pension payments, gratuities, and decease benefits to Next-of-Kin volition proceed to beryllium disbursed successful full, without immoderate deductions oregon taxation liabilities,” the Board stated. “This exemption is accordant with long-standing national argumentation protecting subject status benefits from taxation.”

The clarification provides alleviation to thousands of subject retirees and families who trust connected these payments for their livelihood.

While pensions stay tax-free, the MPB urged each subject pensioners to get their TINs earlier the instrumentality takes effect, arsenic TINs volition beryllium required to support entree to fiscal services.

Veterans tin registry for a TIN done the Joint Tax Board (JTB) mobile app connected Android and iOS devices, oregon via the JTB website. Registration requires a Bank Verification Number (BVN), National Identification Number (NIN), day of birth, and different idiosyncratic details. TIN certificates are typically issued by email wrong 24 to 72 hours.

Observers person commended the MPB for aboriginal communication, noting that wide guidance is indispensable to debar disorder arsenic Nigeria transitions to the caller taxation system.

The Federal Government has besides reiterated its committedness to shielding susceptible groups, including veterans, from the interaction of the reforms.

The station Military pensioners, veterans exempted from caller taxation instrumentality – MPB appeared archetypal connected Vanguard News.