The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has stated that the federal government is looking at imposing a 25% tax rate on individuals earning N100 million and above monthly in the country.
He made this statement during the 30th Nigeria Economic Summit, organized by the Nigerian Economic Summit Group and the Ministry of Budget and National Planning, on Monday in Abuja.
“People will pay tax once we decide that they have to pay. What we realise is that almost 90 per cent of people who are paying taxes are those who should not have been paying in the first place,”
According to him 97% of of those in the informal sector should be formally exempted from tax.
“So that’s where we came up with the data that 97 per cent of the informal sector should be formally exempted from taxes. People do not understand where we are coming from. They’re not the ones to pay taxes. They’re just trying to survive.”
He further revealed the plan of the government to tax wealthy Nigerians more.
“Wealthy Nigerians earning N100million and above monthly will face a 25 per cent personal income tax rate if a new tax bill is passed by the National Assembly.”
He emphasized the need to find a balance by ensuring that wealthy Nigerians contribute more to the government’s revenue.
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“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 noted.
Oyedele revealed that for middle-income earners making ₦1.5 million or less per month, personal income tax obligations would be reduced, while those earning higher amounts would face gradual tax rate increases, ultimately reaching 25 percent. Lower-income earners would be completely exempt from personal income tax.
There have been ongoing discussions about new tax policies, particularly concerning the government’s approach to multiple taxation on businesses.
He also mentioned that these proposed changes are expected to take effect from January 2025, pending the approval of the bill by lawmakers.
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