The Federal Inland Revenue Service (FIRS) today addresses public concerns regarding the new tax regime. Chairman Dr. Zacch Adedeji confirms that personal savings in bank accounts will not incur taxes. Instead, only profits and interest earnings will be subject to taxation.
What the NRS Boss Announced
The NRS boss stated that savings in bank accounts remain untaxed. He emphasized that only profits face taxation. This announcement came amid concerns over the new tax regime. Nigerians worried about taxes on personal deposits.
However the boss assured everyone. He explained that the law targets income and profits, not everyday savings. Transfers between accounts also escape taxation.
Key Details of the Tax Law
The new rules start in January 2026. They apply to earners in Nigeria and abroad. Personal income tax kicks in for those earning over 800,000 naira yearly. If you earn less, you stay tax-free.
Additionally, loans do not attract taxes. Lenders report interest, but borrowers face no direct charges. The Federal Inland Revenue Service works with the Central Bank to enforce this.
Implications for Individuals
Individuals benefit from this clarification. You can move money freely without tax worries. Deposits and transfers remain safe. However interest on savings accounts sees a 10% withholding tax. This applies to earnings from your savings. Plan your finances accordingly.
Impact on Businesses
Businesses face stricter rules. The law taxes profits, not the principal amounts. Companies must report income accurately. Moreover, high earners cannot evade taxes easily. This ensures fair contributions to the state.
Addressing Public Concerns
Peter Obi urged the government to suspend the new laws. He cited potential hardships. The APC defended the reforms, calling them necessary. In response, officials dismissed false claims. They stated no tax on bank account balances exists. Only constitutional taxes apply.
Looking Ahead
This policy aims to boost revenue collection. It focuses on equity and growth. Citizens should stay informed. Therefore consult tax experts for personal advice. The new regime promotes transparency in Nigeria’s economy.
