As Nigeria’s new tax laws take effect, citizens and businesses are bracing for the impact. The laws aim to simplify tax procedures, reduce multiple taxation, and provide relief to low-income earners and small businesses.
In a bid to cushion the effects of inflation, individuals earning below ₦800,000 annually are exempt from personal income tax. This move is expected to benefit millions of Nigerians, particularly those in the informal sector.
The introduction of digital platforms for registration, filing, and payments is also a welcome development. This is expected to reduce the hassle of tax compliance and increase efficiency.
Essential goods and services like food, education, healthcare, and public transport are exempt or zero-rated, providing relief to citizens. The corporate tax cut from 30% to 25% is also expected to boost businesses, especially medium and large firms.
However, companies will need to adapt to new digital systems and compliance requirements. The Nigeria Revenue Service (NRS) is gearing up to provide support, launching awareness campaigns and capacity-building initiatives to ensure a smooth transition.
As citizens and businesses navigate the new tax landscape, the government is optimistic that the reforms will stimulate economic growth and increase revenue. Time will tell how the new laws will shape Nigeria’s economic future.
