Tinubu signs key tax reforms into law: What Nigerians need to know

• President Bola Tinubu precocious signed 4 cardinal taxation betterment bills into law, including the Nigeria Tax Bill and the Nigeria Revenue Service (NRS) Bill
• These caller laws purpose to modernise the taxation system, offering alleviation specified arsenic income taxation exemptions for workers earning N800,000 oregon little and tiny concern owners
• Additionally, indispensable items similar nutrient and aesculapian services are exempt from VAT, and a caller Development Levy volition money nationalist institutions

Legit.ng writer Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

President Bola Tinubu has precocious signed the astir talked-about taxation betterment bills into law. The signing ceremonial took spot astatine the statesmanlike villa connected Thursday, June 26.

President Bola Tinubu precocious signed 4 cardinal taxation betterment bills into law. Photo Credit: FG
Source: Getty Images

The 4 bills, which person present been signed into law, are the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.

This determination follows months of argumentation work, reviews, and consultations aimed astatine modernising a taxation strategy agelong criticised arsenic complex, unfair, and burdensome for tiny businesses.

9 ways the caller taxation laws impact Nigerians

Highlighting the breakdown of the law, Bashir Ahmad explained 9 ways it affects Nigerians:

1. FIRS Renamed to NRS: The Federal Inland Revenue Service (FIRS) is present called the Nigeria Revenue Service (NRS).
2. Unified Revenue Collection: The NRS volition present grip gross collections antecedently managed by agencies similar the Nigeria Customs Service, NUPRC, NPA, and NIMASA.
3. Low-Income Relief: Workers earning N800,000 oregon little annually volition present beryllium exempt from income tax.
4. High-Income Tax: A 25% idiosyncratic income taxation volition use lone to individuals earning much than N50 cardinal annually.
5. Small Business Exemption: Small concern owners are afloat exempt from paying income tax.
6. Corporate Tax Cut: Starting successful 2026, institution income taxation for mean and ample firms volition beryllium reduced from 30% to 25%.
7. VAT Exemptions connected Essentials: Essential items similar food, aesculapian services, pharmaceuticals, schoolhouse fees, and energy are exempt from VAT.
8. No Tax Hike: VAT remains astatine 7.5%, and firm income taxation remains astatine 30%—there has been nary increase.
9. New Development Levy: A 2%–4% Development Levy volition beryllium utilized to money captious nationalist institutions specified arsenic NELFUND, TETFund, NITDA, and NASENI.

Photo Credit: FG
Source: Getty Images

FG takes enactment to summation revenue

Legit.ng reported that Nine months ago, President Bola Tinubu presented the 4 tax betterment bills to the National Assembly for consideration.

The bills see the Nigeria Tax Bill (Ease of Doing Business), the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.

The bills were structured to wholly revamp Nigeria’s taxation system, replacing the existent signifier that has been successful spot since the subject administrations.

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Source: Legit.ng