The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has proposed the possibility of a 25% increase in personal income tax for Nigerians earning over N100 million as stipend.
This bill passed is yet to be authorised by the National Assembly.
Speaking at the 30th Nigeria Economic Summit in Abuja, Oyedele revealed the need for a more balanced and equitable tax system.
He noted that 90% of current taxpayers are individuals who should not be taxed, stressing that the wealthy must contribute more to government revenue.
As part of the reforms initiative, this bill is set to take effect in January 2025 if passed, personal income tax rates will rise incrementally for those earning higher incomes, while middle-income earners making less than N1.5 million monthly will see reductions. Lower-income earners would be exempt from personal income tax altogether.
Oyedele revealed that corporate income tax rates will drop from 30 per cent to 25 per cent, a move aimed at alleviating the tax burden on businesses.
The reforms also plan to eliminate VAT on essential goods and services such as food, health, and education to reduce the financial strain on lower-income households.
He added that while some sectors will benefit from reduced taxes, VAT rates on other goods and services will increase to ensure government revenue remains stable.
The committee will also streamline tax incentives, which Oyedele said are often detrimental to the economy.
