Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, has announced that wealthy Nigerians earning N100 million or more per month could face a 25% personal income tax if a new bill is passed.
He shared this at the 30th Nigeria Economic Summit, noting that 90% of current taxpayers should not be taxed. The proposed tax reforms aim to lessen the tax burden on lower-income earners while increasing rates for the wealthy. Middle-income earners making N1.5 million or less monthly will see tax cuts, while higher earners will face incremental tax increases, reaching 25%. Lower-income individuals will be exempt.
Additionally, businesses will get VAT credits on services and assets to reduce costs, and the corporate tax rate will drop from 30% to 25%. Essential goods and services like food, health, and education may have reduced or eliminated VAT, while VAT rates for other goods may increase to maintain revenue. Oyedele emphasized removing unnecessary tax incentives and ensuring the right individuals pay taxes using accurate data.
The proposed reforms are expected to take effect in January 2025..
