Raphael Kanu
The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, on Thursday, described the newly signed tax laws as “pro-poor,” saying they will ease the burden on low-income earners, small business owners, and everyday Nigerians.
He revealed this to State House correspondents after President Bola Tinubu signed four tax bills into law.
He said, “More than 1/3 of workers in both the private and public sectors will now be exempted completely from PAYE.
“They will not have to pay personal income tax. Small businesses, over 90 per cent of small and micro, nano businesses, will no longer have to worry about paying corporate income tax or charging VAT or even deducting withholding tax or paying PAYE for their employees.”
Oyedele added that the reforms will leave “More money in the hands of the ordinary Nigerian to take care of their daily needs,” and announced a new zero‑rate VAT framework on essential items.
“Any traces of VAT in food, in education, in medical and health care are now removed completely, so we should see prices of those items come down,” Oyedele explained.
He also emphasised relief for sectors where households spend most, clarifying that “Transportation, accommodation and housing are exempted from VAT… collectively account for more than 80 per cent of where Nigerians spend their money. That’s a huge relief for them.”
Oyedele further noted that the reforms include measures to boost tax collection efficiency and transparency.
He said, “Provisions have been made to help us improve efficiency in how we collect taxes, and also efficiency in the transparency of reporting the taxes we collect, which we expect should then be linked to how those taxes are utilised for the purpose of the people.”
