The Federal Government has reassured that the new tax reforms, set to take effect from 1 January 2026, will not involve automatic debits from personal bank accounts, and individuals do not need to provide explanations for transfers.
Addressing widespread misconceptions surrounding the reforms, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele said on Channels Television’s special programme on Tuesday said: ‘People think that the government will debit their bank accounts from next year, and how they even came up with that, I have no idea. Nobody will debit your account for any amount you transfer. Whether it’s a billion or one thousand naira, at the end of the year, you tell the government yourself’.
Explaining the process and emphasising its simplicity and transparency, Oyedele said that the new tax system simplifies reporting and ensures fair taxation for small businesses, without burdening the vulnerable.
‘You know what constitutes your income and what doesn’t. So you tell the government: ‘This is my income and here is the tax’. If you are exempted, you simply declare: ‘This is my income, and I am exempted from tax’. It is a very simple process that we are simplifying further.
‘One of the biggest benefits is that if you run a small business as a sole proprietor, an enterprise, or you are just hustling, the system will no longer be regressive, taxing the vulnerable more. We’ve made it progressive’, he said.
Earlier on Tuesday, President Bola Tinubu confirmed that the implementation of the new tax laws will commence as scheduled, despite criticisms from political figures, opposition groups, and labour unions.
