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Nigerian celebrities to pay 25 percent tax – Oyedele

Published

2 days ago

October 15, 2024

The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has said that wealthy Nigerians earning N100m 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 stated that 90 per cent of the current taxpayers are people who should not be taxed while advocating for a more streamlined and equitable tax system in the country.

This revelation was made during a breakout session at the ongoing 30th Nigeria Economic Summit organised by the Nigerian Economic Summit Group and the Ministry of Budget and National Planning on Monday in Abuja.

Oyedele emphasised the need to strike a balance between easing the tax burden for lower-income earners and ensuring the wealthy contribute more to government revenue.

“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 stated.

The fiscal policy expert said the government is prepared and determined to ensure that the right individuals pay taxes, noting that his committee is actively working to achieve the goal.

He added that the proposed changes are expected to take effect from January 2025, based on the passage of the bill by lawmakers.

For middle-income earners making N1.5m or less per month, Oyedele disclosed that their personal income tax obligations would decrease while those earning higher amounts would see incremental increases in their tax rates, eventually reaching 25 percent. Lower-income earners would be fully exempt from personal income tax.

The reforms also aim to ease the tax burden on businesses.

Oyedele noted: “Today, whatever VAT you (businesses) pay on assets—whether you’re building a factory, buying a laptop, or vehicles—you bear it. This increases your cost, and therefore, your pricing will go up. Once our reforms are implemented, you get the credit back 100 percent on services and assets.”

“People will pay tax once we decide that they have to pay. What we realize is that almost 90 per cent of people who are paying taxes are those who should not have been paying in the first place,” he said.

“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.”

Regarding how his committee is working to ensure the right individuals pay taxes, Oyedele said the team would utilise primary data identification channels to accurately bring the appropriate group of taxpayers into the tax bracket.

Additionally, the corporate income tax rate is set to drop from 30 per cent to 25 per cent which Oyedele described as “huge” for businesses. Other significant tax adjustments include a reduction or elimination of VAT on essential goods and services such as food, health, education, accommodation, and transportation.

These essential services make up a large portion of household expenditure for the lower-income population, and the proposed reforms aim to lessen their financial burden.

However, Oyedele acknowledged that not all sectors would benefit from reduced tax rates. For other goods and services, the VAT rate would increase to ensure the government’s revenue book balance.

He also pointed out that inflation had already acted as a “disorderly” tax on the population, eroding the value of their money without the need for legislation.

In addressing concerns over tax incentives and waivers, Oyedele argued that indiscriminate incentives harm the economy and that removing unnecessary incentives could relieve the business sector without costing the government revenue.

“We cannot give all the incentives you are asking for. We think the biggest low-hanging fruit is removing these incentives, and that’s exactly what we are doing,” Oyedele concluded.

News

Just in: Final knockout for Fubara as Supreme Court refuses to grant stay of execution request

Published

53 mins ago

October 16, 2024

Austin Ojomah

It is final blow as he Supreme Court today, denied Fubara Stay of Execution asking the counsels to the Rivers state Government to obey the Apoeal Court judgment while their Appeal are been heard.

Fubara and his 3 Lawmakers may have to kiss the dust with this latest development.

Information reaching me Sat’s INEC will this week announce dates for Bye election into the vacant seats.

More details shortly…

News

University Don Tells FG To Sanction NUPENG President, General Secretary Over Failure To Curtail Tanker Fire Fatalities*

Published

1 hour ago

October 16, 2024

Kayode Sanni-Arewa

By Kayode Sanni-Arewa

Victims of Wednesday’s inferno in Jigawa State where over 100 people were burnt to death have received sympathy from an American based Professor of Humanity who called on the Federal government to sanction the leadership of Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) over failure to curtail incessant deaths arising from tanker-related accidents across the country.

Professor Josephine T. Abubakar from University of Maryland, United States also commiserated with the families who lost loved ones in the tragic incident and prayed that God grant them the fortitude to bear the loss.

In a statement she made available to newsmen on Wednesday, October 16, 2024 she said Nigerian ministry of petroleum resources in collaboration with the National Petroleum Corporation Limited (NNPCL) need to activate Safe-To-Load Initiative to mitigate incessant petroleum products tanker accidents and ensuing fire outbreaks in Nigeria.

The University don said, “It is highly irresponsible of an oil Union like NUPENG, especially its General Secretary, Afolabi Olawale for not reacting officially to a national tragedy caused by one of the branches of its union, PTD in particular. This is horrible and unbelievable, over 100 lives met their untimely death. NUPENG should not only be seen collecting multiple levies and dues from Tanker Drivers, but should be seen putting adequate safety measures in place to avoid fatalities like the one the country witnessed on Wednesday.

“The deaths was a colossal loss for Nigeria, and what made it more worrisome and heart-rending was that it could be avoided but NUPENG and PTD have failed in their responsibilities, rather they concentrate on bickering over leadership tussle, legal fireworks and other ventures that can bring pecuniary gains for them at the expense of their defenseless members. It’s a shame that Augustine Egbon, a stooge in PTD who was hand-picked to be the National Chairman has also been silent about this recent calamity. NUPENG has outrightly failed Nigeria to say the least.

“However, this is the best time for the Nigerian government to look into the activities of NUPENG and PTD so that public safety and security will no longer be put into jeopardy. Nigeria has lost many lives as a result of negligence, weak and incompetent leadership in NUPENG and PTD who cannot even fix its internal crisis but disgracing themselves on the pages of newspapers and the internet on a daily basis.

“The call also goes to Nigerian ministry of petroleum resources to collaborate with the National Petroleum Corporation Limited (NNPCL) so as to activate Safe-To-Load Initiative to mitigate incessant petroleum products tanker accidents and ensuing fire outbreaks in Nigeria.

“PTD used to be known for operational excellence and robust safety checklist for loading of petroleum products at terminals, retail outlets and depots but since Afolabi came to the saddle as General Secretary, the Union has been in tatters. Government must overhaul NUPENG and PTD, if need be, Afolabi and the President should be sacked while the DSS can take over the affairs of the union, until a proper election is conducted. There is nothing new, this has happened in NUPENG before”, she said.

The professor further appealed to Tinubu led government to be committed in ensuring safe roads for petroleum products distribution in the country and as well continue to create laudable interventions that can cushion the hardships faced by tanker drivers in their task of distributing products across the country, while also stressing that law enforcement agencies must as well show cooperation, support and provide security/succor for the hardworking tanker drivers.

News

Impeachment Plot: Akpabio Cautions Nigerians To Disregard Media Report

Published

5 hours ago

October 16, 2024

Gloria Ikibah

By Gloria Ikibah

The President of the Senate, Senator Godswill Akpabio, has admonished Nigerians to disregard stories of his planned impeachment, even as he described it as an illusion.

Naijablitznews.com recalled that an online publication, (Name withheld on Wednesday, published a story titled “DSS Takes Over National Assembly Amid Impeachment Speculations Against Senate President Akpabio”, which has since been republished by other media outlets.

The Special Adviser on Media and Publicity to the President of Senate, Hon. Eseme Eyiboh in a statement on Wednesday said the report was a figment of the reporters imagination.

He said: “Distinguished Senator Godswill Akpabio, President of the Senate of the Federal Republic of Nigeria, wishes to state without equivocation that the speculation and misinformation circulating about an alleged impeachment plot against him is the handiwork of fifth columnists who are perpetual merchants of misinformation and purveyors of mischief.

“As a Head of one of the Arms of government, the President of the Senate categorically denies these baseless claims and reaffirms his commitment to transformational leadership of the Senate particularly and effectively collaborates with the other arms of government. There is no crack in the Upper Chamber and no Senator or Caucus is plotting any impeachment against the President of the Senate. Every Senator is focused on raising the bar of Legislative Agenda and Nation building.

“The allegations are nothing but a desperate attempt to create division and discord among the esteemed senators. It’s unfortunate that some individuals would resort to spreading falsehoods to promote the invidious reins of their blackmail enterprise.

“Senator Godswill Akpabio remains focused on the implementation of the 10th Senate’s Legislative Agenda and working tirelessly to address the pressing National issues of growth and prosperity.

“The Senate President will not be distracted by these unfounded rumours and wants to assure the public that his commitment to Nigeria’s progress remains unwavering.

“We therefore urge the public to disregard these baseless claims and instead focus on the meaningful work being done by the Senate to improve the lives of all Nigerians”.