The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, says the newly signed tax laws are designed to be “pro-poor”, easing financial pressure on low-income earners, small businesses, and everyday Nigerians.
Speaking to State House correspondents on Thursday after President Bola Tinubu signed four tax bills into law, Oyedele explained that the reforms will directly benefit millions.
Key Highlights of the Reforms
PAYE Relief: Over one-third of workers in both public and private sectors will now be exempt from paying personal income tax (PAYE).
Small Business Protection: More than 90% of micro, small, and nano businesses will no longer be required to pay corporate income tax, charge VAT, deduct withholding tax, or remit PAYE for employees.
Zero-Rate VAT: A new framework eliminates VAT on essential items including food, education, medical care, and healthcare services. Oyedele noted this should reduce the cost of these vital needs.
Everyday Exemptions: Transportation, accommodation, and housing—sectors that account for over 80% of household spending—are now VAT-free, offering major relief to Nigerians.
Transparency and Efficiency
Oyedele added that the reforms also include provisions to improve tax collection efficiency and reporting transparency, ensuring better alignment between tax revenues and public spending.
“These reforms will leave more money in the hands of ordinary Nigerians to take care of their daily needs,” he said.
