Now that the new tax laws are in effect, Nigerians need to be informed and refrain from sharing half-baked information.
Development Diaries reports that many Nigerians are still seeking to understand how these changes will affect their daily lives and the broader economy.
According to media reports, despite the House of Representatives establishing a committee to investigate allegations by a lawmaker that the laws passed by the National Assembly differed in some areas from the laws gazetted by the federal government, the lawmakers have released certified true copies of the laws as signed by President Bola Tinubu.
What you need to know and do
First, you must know that not everyone will pay more tax. If you earn N800,000 or less in a year, you are fully exempt from personal income tax. Many low-income workers and small traders fall into this category.
Also, not all bank transfers are taxed; only unexplained money that looks like income can be taxed, not gifts, loans, or transfers between your own accounts.
Your bank account will not be seized just because the new tax laws are in effect. A Tax Identification Number (TIN) is now required for many financial activities, but it is for tracking compliance, not confiscation.
Second, you must know that everyone must file tax returns, even if you are exempt from paying tax. This is called zero return.
Filing shows that you are compliant. Individuals must file by 30 June, while companies must file by 31 March. If you do not file, penalties apply, and they are heavy.
Record keeping
Keeping records is now very important. If money enters your account as a gift or loan, you should be able to explain it when filing. The system is stricter, and ignorance will not protect anyone.
Third, you must know that businesses are treated differently under the new law. Small businesses with low turnover of less than N100 million annually and assets of less than N250 million will pay zero Company Income Tax (CIT); they are fully exempt.
Medium and large businesses pay more, and several old taxes have been merged into one Development Levy to make things simpler.
Value Added Tax (VAT) has not increased, and basic items like food, medicine, transport, and education are zero-rated. This means the government says it is trying to protect poor people while collecting more from those who earn more.
Demand accountability
Finally, you must know that paying taxes gives you the right to ask questions. Now that these laws are in force, you must demand clear information, simple filing processes, and constant public education from the Nigeria Revenue Service and the Ministry of Finance.
You must also demand accountability from the president, your governors, lawmakers, and local government officials on how tax money is used.
If you are paying taxes, roads should improve, schools should work, hospitals should function, and budgets should be explained. Paying tax is not the end; asking questions and demanding results must follow.
