Nigeria aims to make its tax system more equitable by potentially increasing the tax rate to 25% for individuals earning above N100 million each month. This adjustment was considered during a meeting in Abuja organized by the Nigeria Economic Summit Group and the Ministry of Budget and National Planning.
Taiwo Oyedele, the chairman of the Presidential Fiscal Policy and Tax Reforms Committee, highlighted issues with the current system, in which the poorest pay the majority of taxes.
These proposed amendments, which might take effect in January 2025, aim to reduce taxes for those earning N1.5 million or less per month while increasing taxes for the very wealthy.
This idea would assist to balance the budget and ensure that wealthy people pay a fair share. It would also eliminate the income tax for the very poor and reduce taxes for middle-class workers.
The government aims to lower taxes on essential products such as food and health services, benefiting low-income families. To keep the government’s finances in balance, taxes on luxury items may be raised.
