The Nigeria Revenue Service (NRS) announced that the new tax laws are designed to help the poorest people in Nigeria the most. These changes aim to make life easier for everyday Nigerians by focusing taxes on big profits and success, not on basic needs or low-income families.
Key Exemptions for the Poor
The reforms provide many exemptions. First, the government removes taxes on basic needs. Poor families spend most of their money on food. Therefore this change helps them save more.
Moreover NRS ensures no new burdens fall on vulnerable groups. For instance, pensions and gratuities stay tax free. Workers also see higher personal income tax exemptions.
Removal of VAT on Essentials
VAT disappears from key items. The government exempts basic food like rice and beans. Essential drugs and educational tools follow suit. Furthermore agricultural inputs and renewable energy gear avoid VAT.
Transportation services for the public also get relief. Since food takes 90 percent of poor households’ income, this cut eases daily life. As a result, families keep more cash for health and education.
Benefits for Small Businesses and Workers
Small companies thrive under these rules. Businesses with turnover below N25 million pay no company income tax. This supports local entrepreneurs.
Additionally, low-income workers face no withholding tax. Remittances from abroad remain untaxed. Therefore families receive full support from relatives overseas.
Statements from NRS Leadership
Zacchaeus Adedeji, NRS Executive Chairman, speaks clearly. He states the reforms protect the poor and reduce living costs. During an Arise Television interview, Adedeji stresses no tax increases occur.
Instead, exemptions dominate. He adds that poor Nigerians benefit most when all reliefs combine. Furthermore, no officials check bank accounts for transfers.
Conclusion
These tax reforms mark a positive shift. The government prioritizes the needy. Moreover, poor Nigerians enjoy real gains. Increased revenue funds infrastructure and services. However citizens must learn the facts to avoid misinformation.
