The Federal Government is considering a 25% income tax for Nigerians earning N100 million and above per month in furtherance of its sustained fiscal initiatives aimed at enhancing the nation’s revenue accruals and fairness in the tax system.
The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, gave this hint during his address at the 30th Nigeria Economic Summit (NES) in Abuja.
Specifically, the fiscal expert hinged the basis of the proposed tax hike on high income earners on the need to create a more balanced and efficient tax system in Nigeria.
According to him, majority of current taxpayers, representing about 90%, should not be subject to further taxation, thereby underscoring the importance of easing the burden on lower-income earners.
He said: “We are focusing on those who can afford to contribute more. If you earn N100 million a month, we are taking up to 25% from the wealthy. That’s because we need to balance the books.”
Oyedele restated the government’s determination to ensure that taxation is fair and based on the progressive principle such that only the right individuals are taxed and ensure that high earners will contribute more to revenue for good governance.
He explained that the proposed changes in the Tax Bill, which are expected to come into effect in January 2025, are contingent on the passage of the bill by lawmakers, adding that the fiscal is part of the government’s broader effort to reform the nation’s fiscal policies and strengthen revenue generation.
