Wealthy Nigerians earning ₦100m and above monthly will face a 25 per cent personal income tax rate if a new tax bill is passed by the National Assembly.
This was stated by the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele during a breakout session at the ongoing 30th Nigeria Economic Summit organised by the Nigerian Economic Summit Group and the Ministry of Budget and National Planning on Monday in Abuja.
According to him, 90 per cent of the current taxpayers are people who should not be taxed.
He advocated for a more streamlined and equitable tax system in the country.
Oyedele emphasised the need to strike a balance between easing the tax burden for lower-income earners and ensuring the wealthy contribute more to government revenue.
“If you earn N100m a month, we are taking up to 25 per cent from the rich people. That’s because we need to balance the books,” Oyedele stated.
He said the government is prepared and determined to ensure that the right individuals pay taxes, noting that his committee is actively working to achieve the goal.
He added that the proposed changes are expected to take effect from January 2025, based on the passage of the bill by lawmakers.
The reforms also aim to ease the tax burden on businesses.
For middle-income earners making N1.5m or less per month, Oyedele disclosed that their personal income tax obligations would decrease while those earning higher amounts would see incremental increases in their tax rates, eventually reaching 25 per cent. Lower-income earners would be fully exempt from personal income tax.
