TRANSFORMING NIGERIAN TAX SYSTEM FROM OLD TESTAMENT TO NEW TESTAMENT

President Bola Ahmed Tinubu has signed into law the Nigeria Tax Reforms Bills.

Recall that the National Assembly previously rejected the Bills, but today, the Law of Moses is now repealed, and the Gospel will be written in our hearts

Key Highlights of the Bill:

1. Tax exemption for workers earning ₦800,000 and below annually.
2. 25% personal income tax applies only to individuals earning above ₦50 million annually.
3. Small businesses owners are exempted from paying income tax.
4. Company income tax for medium and large companies will be reduced from 30% to 25% starting in 2026.
5. Value Added Tax (VAT) exemptions on essential goods and services consumed by the poor, including food items, medical services, pharmaceuticals, educational fees, and electricity.
6. The Nigeria Revenue Service (NRS) will now collect revenues previously handled by agencies such as the Nigeria Customs Service, NUPRC, NPA, and NIMASA.
7. VAT remains at 7.5%, and corporate income tax stays at 30%. NO INCREMENT!
8. Introduction of a Development Levy ranging from 4% to 2%, allocated to support the Student Education Loan Fund, TETFund, NITDA, and NASENI.
9. FIRS now renamed NRS