Nigerians Earning N100million & Above To Face 25% Personal Income Tax If New Tax Bill Is Passed

The Tinubu government is planning to impose a 25% tax on wealthy Nigerians earning N100 million or more monthly.

This was announced by Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, at the 30th Nigeria Economic Summit in Abuja.

Oyedele noted that the current tax system is flawed, with 90% of those paying taxes being individuals who shouldn’t be paying in the first place.

“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”

The proposed tax reform aims to exempt 97% of informal sector workers from taxes, as they’re merely trying to survive. Middle-income earners making N1.5 million or less per month will see decreased personal income tax obligations, while higher earners will face incremental increases, capping at 25%.

“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.”

“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.”

“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.

Lower-income individuals will be fully exempt from personal income tax.