||For more Info or Publication and Personal Media Contact Our Hotline: 0903571735||
||||||||||||||||||||||||||||||||||
– Tax Exemptions: Businesses with less than N50 million turnover are exempt from tax payment.
– Income Tax Relief: Over 90% of workers in the public and private sectors will no longer pay income tax.
– VAT-Free Goods: Over 82% of goods consumed by low-income persons will be VAT-free ¹.
– Simplified Taxation: The reform scraps over 50 nuisance taxes suffered by local businesses.
– VAT Calculation: VAT will be calculated based on where goods are consumed, rather than where companies have their headquarters.
– Progressive Taxation: The rich will pay more tax, while the poor will stop paying taxes.
– Consumption Tax: Consumption tax collected by states will be eliminated completely ¹.
– VAT Revenue Distribution: The FG’s share of VAT will reduce from 15% to 10%, with states and LGAs receiving 90%.
– Income Tax Cuts: Those earning less than N1.7 million monthly will pay less income tax, while those receiving less than N9 million per annum could have their income tax cut by half.
– Single Tax Collection Agency: Customs, NUPRC, and other government agencies will no longer collect tax, with only one agency responsible for collecting all taxes.
– Abolition of Multiple Tax Laws: The bill could lead to the abolition of other multiple tax laws, like the stamp duty act.
– Gradual VAT Increase: VAT will increase gradually from 10% in 2025 to 15% in 2030, with most goods consumed by low-income earners exempt from VAT.
