₦airaland Forum

BREAKING 🚨

Commander declares all political activities banned under South Korea’s martial law.

Things are happening in this world ,these are signs folks, more unrest in different nations incoming.

Africa countries not excluded , especially those welcoming Russian military.

Awoolo

Ibime:
Today or 3 years ago?

Building 732 duplex will bring unit cost down to 50m today,

2 years ago, those duplex will be built for 30m. I was just being generous with that 40m figure.

Penny pinching accountant

BlueRayDick:
I've not read the tax bill but the feelers I've been getting is that government intends to tax middle class & upper class more while those who earn too little won't be taxed.

Maybe it's just a way of saying the poor have not really been paying tax, so why not just make it official that they are exempted from tax?

If they are saying anybody earning less than 1m won't be taxed, it means they are saying only people who earn above minimum wage will pay tax. Minimum wage is N70k per month and that gives N840k per annum. Most people don't live on less than 85k per month and 85k per month is already N1.02m already which means they will surely pay tax.

From where I stand sef, more people will be dragged into the tax net with this new tax bill. The government may earn more tax sef

The tax cuts weren't at income tax level... At least not directly

Theyve announced 0% corporation tax for small companies(25m annual turnover,which is probably like 90% of Nigerian businesses) , and phased reduction of corporation tax for companies with higher turnover

Up to 20 year tax holidays for agriculture, manufacturing, It, and exporting businesses

No VAT on food, medicine, and electricity.

50% deduction from employer tax when they hire employees, another 50% deduction for employers that raise salary of their employees to 100k per month.

It's.... A lot

chidekings:
its been long ibime did some building...building avery good duplex will cost in the region of 60m

Leave am na

This Tax reform bill and reactions to it is only showing one thing we've all know but refused to admit : NIGERIA IS NOT ONE!

nihilistjnr:
The tax cuts weren't at income tax level... At least not directly

Theyve announced 0% corporation tax for small companies(25m annual turnover,which is probably like 90% of Nigerian businesses) , and phased reduction of corporation tax for companies with higher turnover

Up to 20 year tax holidays for agriculture, manufacturing, It, and exporting businesses

No VAT on food, medicine, and electricity.

50% deduction from employer tax when they hire employees, another 50% deduction for employers that raise salary of their employees to 100k per month.

It's.... A lot

Wow! I guess I will have to lay my hands on bill and through myself.

If all these are what they proposed and intend to legislate, the country will go broke in no time o. To the best of my knowledge, aside selling crude oil , corporate tax and import duties, Nigerian Government doesn't really have much going on for them on the revenue side.

These should actually be the talking points as regards this tax reform bill and North vs South VAT war

Lol.

It's amusing to me that some Nairalanders know more than Taiwo Oloyede (a renowned tax expert) and the other Tax Reform Committee members who are seasoned professionals from different fields, who have consulted far and wide, obtained input from different stakeholders, simulated different scenarios, crunched the numbers, and came up with the bill.

I've heard different criticisms of the TRB but this one that its implementation will make the country go broke takes the cake.

semid4lyfe:
Lol.

It's amusing to me that some Nairalanders know more than Taiwo Oloyede (a renowned tax expert) and the other Tax Reform Committee members who are seasoned professionals from different fields, who have consulted far and wide, obtained input from different stakeholders, simulated different scenarios, crunched the numbers, and came up with the bill.

I've heard different criticisms of the TRB but this one that its implementation will make the country go broke takes the cake.

Emefiele is a seasoned banker who became the CBN governor ; today we know the effect of his time as CBN governor.

Nobody is claiming to know more than Oyedele and the tax reform team. What we are only doing is asking questions which needs to be answered to understand how the tax reform bill aims to cover for the shortfall in FG's revenue when the bill is implemented.

I'm sure someone like Oyedele won't shy away from providing answers . If FG gives 20 years tax holiday to firms that are into manufacturing, IT, exportation and agriculture, how does FG intends to fund itself and it's agencies?

This is not even criticism but asking obvious questions.

BlueRayDick:
Wow! I guess I will have to lay my hands on bill and through myself.

If all these are what they proposed and intend to legislate, the country will go broke in no time o. To the best of my knowledge, aside selling crude oil , corporate tax and import duties, Nigerian Government doesn't really have much going on for them on the revenue side.

These should actually be the talking points as regards this tax reform bill and North vs South VAT war

If they're able to make a lot more persons pay tax, it might not make much of a difference.

semid4lyfe:
Lol.

It's amusing to me that some Nairalanders know more than Taiwo Oloyede (a renowned tax expert) and the other Tax Reform Committee members who are seasoned professionals from different fields, who have consulted far and wide, obtained input from different stakeholders, simulated different scenarios, crunched the numbers, and came up with the bill.

I've heard different criticisms of the TRB but this one that its implementation will make the country go broke takes the cake.

If we want to go by whatever professionals/politicians recommend being automatically good for the country, we for no dey where we dey.

Everyone should be dropping their two cents on the bill, and it's possible a random nairalander can make correct predictions on the effect of the bill, contrary to what the pros have said even when they don't have access to as much data as the government guys have.

Theflint1:
I think he was the biggest loser from that G5 nonsense...the G5 thing hampered what should have made him a solid VP or even presidential pick within the PDP and has made him neither here nor there as regards his political ideology.

How and when will Makinde be a VP pick never mind President from the PDP

nihilistjnr:
The tax cuts weren't at income tax level... At least not directly

Theyve announced 0% corporation tax for small companies(25m annual turnover,which is probably like 90% of Nigerian businesses) , and phased reduction of corporation tax for companies with higher turnover

Up to 20 year tax holidays for agriculture, manufacturing, It, and exporting businesses

No VAT on food, medicine, and electricity.

50% deduction from employer tax when they hire employees, another 50% deduction for employers that raise salary of their employees to 100k per month.

It's.... A lot

How much tax was govt generating from this source before

Theflint1:
If we want to go by whatever professionals/politicians recommend being automatically good for the country, we for no dey where we dey.

Everyone should be dropping their two cents on the bill, and it's possible a random nairalander can make correct predictions on the effect of the bill, contrary to what the pros have said even when they don't have access to as much data as the government guys have.

The allegations before was that Tinubu only knows how to tax poor people to death to generate income

Now it's that the proposed tax bill won't even generate enough

That's progress

BlueRayDick:
Emefiele is a seasoned banker who became the CBN governor ; today we know the effect of his time as CBN governor.

Nobody is claiming to know more than Oyedele and the tax reform team. What we are only doing is asking questions which needs to be answered to understand how the tax reform bill aims to cover for the shortfall in FG's revenue when the bill is implemented.

I'm sure someone like Oyedele won't shy away from providing answers . If FG gives 20 years tax holiday to firms that are into manufacturing, IT, exportation and agriculture, how does FG intends to fund itself and it's agencies?

This is not even criticism but asking obvious questions.

Touche!

I hope the emboldened below allays your fears somewhat.

For me, anything that lightens the burden of the common man and brings succour to him is welcome.

---

Aside from the incentive for minimum wage earners, the tax reform bills equally exempt small businesses from the payment of taxes. It first reviews the financial threshold of businesses that can tap into such benefits. Unlike the subsisting regime that grants exemptions to businesses with N25 million annual turnovers, the tax reform bills raise the threshold to N50 million, which unequivocally accounts for a 100% increase. The bill also exempts small businesses with total assets of N250 million. Again, this is an audacious, indeed progressive initiative with the intent of providing an environment that can speed up the growth of such businesses rather than suffocating them. With these provisions, thousands of businesses within this threshold will be relieved of tax burden. The idea behind this initiative is not far-fetched. First, micro, small, and medium enterprises, MSMEs, constitute about 48% of our GDP. Second, they provide about 87% of total employment nationwide. Third, they have a strong presence across all 774 local government areas. All this data obviously attests to the crux of granting small businesses with N50 million annual turnover tax exemption and its significance in building an army of vibrant entrepreneurs.

The last takeaway largely borders on the long-standing concerns about multiple taxation. Conglomerates, multinationals, and organised private sectors have been complaining about this syndrome for decades. But the tax proposal now offers relief under Section 56 of the Nigeria Tax Bill. The proposal now opts for a significant reduction in company income tax rather than sticking to the subsisting regime that multiplies their tax obligations. The reduction will be effected in two successions. From 30% currently, the bill proposes 27.5% in 2025 and 25% in 2026, which, according to development data, is conservative compared to 27% in South Africa and 30% in Kenya. The bill also introduces a 4% development levy aimed at harmonising the multiplicity of taxes and levies paid by companies. It also maps out the plan to reduce the development levy to 2% in 2030, which will be devoted solely to funding the Nigerian Education Loan Fund, NEFUND, thereby phasing out the 2.5% education tax, the 0.25% National Agency for Science and Engineering Infrastructure tax, and the 1% National Information Technology Development Levy. Instead of all these earmarked taxes, the company will only pay a 4% development levy till 2029 and 2% afterward for the funding of Nigerian Education Loan Fund, a scheme that has benefitted no fewer than 10,000 students already.

raumdeuter:
How and when will Makinde be a VP pick never mind President from the PDP

Makinde maintaining the sort of PR he enjoyed his first 3 years would have been a very solid pick for VP 2027, and could even have made decent showing in PDP primaries sef...boys bin too dey ride for Makinde that e first tenure, him doing that g5 thing lost him a ton of goodwill, at least on social media.

raumdeuter:
The allegations before was that Tinubu only knows how to tax poor people to death to generate income

Now it's that the proposed tax bill won't even generate enough

That's progress

I think the main grudge people have with Tinubu is the wastage and that workings no dey ground like that, so what then's the point of the excessive taxation.

It's left to be seen how the new tax regime would affect the average Joe sha, but if they're to increase tax collection to include more persons, then the groans about excessive taxation might just continue

Theflint1:
Makinde maintaining the sort of PR he enjoyed his first 3 years would have been a very solid pick for VP 2027, and could even have made decent showing in PDP primaries sef...boys bin too dey ride for Makinde that e first tenure, him doing that g5 thing lost him a ton of goodwill, at least on social media.

PR is not real life.

So you think in 2027 How will that work? So you are assuming Atiku-Okowa would win, do one term and somehow Makinde will enter the equation

Or Tinubu would win 2023, and by 2027 another SW person like Makinde will be eligible for presidency?

Social media is not real life

Theflint1:
I think the main grudge people have with Tinubu is the wastage and that workings no dey ground like that, so what then's the point of the excessive taxation.

It's left to be seen how the new tax regime would affect the average Joe sha, but if they're to increase tax collection to include more persons, then the groans about excessive taxation might just continue

Workings no dey ground ke? Yet Lagos was able to survive despite FG withholding LG allocations under Tinubu, Today without allocations Lagos state will still survive, You think say na air dem dey use cater for 20m people in Lagos

semid4lyfe:
Lol.

It's amusing to me that some Nairalanders know more than Taiwo Oloyede (a renowned tax expert) and the other Tax Reform Committee members who are seasoned professionals from different fields, who have consulted far and wide, obtained input from different stakeholders, simulated different scenarios, crunched the numbers, and came up with the bill.

I've heard different criticisms of the TRB but this one that its implementation will make the country go broke takes the cake.

The FG is desperate in my opinion, and this looks like (to my layman eyes) a hail mary attempt to try to at the very least pacify the citizens for a little bit, and with a bit of luck stimulate busines investments.

This very week, it was announced that FG was borrowing 2.2 billion dollars to service a deficit in the current budget. That doesn't sound like a country that can afford to give away revenue in tax cuts, especially in corporate income tax.

I have checked and seen that apparently businesses with less than 25m in annual turnover already dont pay corporation tax (so I dont know why it's included in the bill), but the current corpration tax rate is 30% for companies with 100m turnover, which the bill is proposing to bring down to 25%, which is a 17% reduction in tax revenue from eligible businesses if my maths is correct.

Then they also put a line in that I found interesting.
Notwithstanding any provision of this Act or any other enactment, where,in any year of assessment, the effective tax rate of a company is less than 15%, such company shall recompute and pay an additional tax that makes its effective tax rate equal to 15%.

Now this rule apparently only applies to MNCs that turnover minimum of 20 Billion a year. The bill is basically saying you guys must pay at least 15% of that money. But the same bill proposes that that these companies should be paying 25% (currently 30%). Apart from the fact that the 5% difference on 20 billion revenue is 1billion naira in lost revenue - now companies know they are allowed to cook their books recompute their tax liability to hit minimum 15%, and I fail to see any incentives to surpass that threshold. I'll leave you to workout the difference between paying 30% of 20billion and 15% of 20 billion in tax

I'm not a tax guy, or an accounting guy, or even a maths guy...but I can see that a couple of things dont seem to add up. I would expect a cash strapped government to be raising taxes not cutting them, unless, at least in my head, government is getting ready for a major economic decline and is trying to soften the blow.

Edit :
Having done some additional digging, I see that Small company is defined in current CIT tax act as companies with turnover of 25m per annum.

The new bill proposes to change the defining threshold to companies that earn up to 50 million naira.

Currently, the government is entitled to 20% of that 50m in corporate tax - which is 10 million naira business. This bill is proposing that the government gets none of that revenue. LOL.

Omo e go be.

semid4lyfe:
Touche!

I hope the emboldened below allays your fears somewhat.

For me, anything that brings the burden of the common man and brings succour to him is welcome.

---

Aside from the incentive for minimum wage earners, the tax reform bills equally exempt small businesses from the payment of taxes. It first reviews the financial threshold of businesses that can tap into such benefits. Unlike the subsisting regime that grants exemptions to businesses with N25 million annual turnovers, the tax reform bills raise the threshold to N50 million, which unequivocally accounts for a 100% increase. The bill also exempts small businesses with total assets of N250 million. Again, this is an audacious, indeed progressive initiative with the intent of providing an environment that can speed up the growth of such businesses rather than suffocating them. With these provisions, thousands of businesses within this threshold will be relieved of tax burden. The idea behind this initiative is not far-fetched. First, micro, small, and medium enterprises, MSMEs, constitute about 48% of our GDP. Second, they provide about 87% of total employment nationwide. Third, they have a strong presence across all 774 local government areas. All this data obviously attests to the crux of granting small businesses with N50 million annual turnover tax exemption and its significance in building an army of vibrant entrepreneurs.

The last takeaway largely borders on the long-standing concerns about multiple taxation. Conglomerates, multinationals, and organised private sectors have been complaining about this syndrome for decades. But the tax proposal now offers relief under Section 56 of the Nigeria Tax Bill. The proposal now opts for a significant reduction in company income tax rather than sticking to the subsisting regime that multiplies their tax obligations. The reduction will be effected in two successions. From 30% currently, the bill proposes 27.5% in 2025 and 25% in 2026, which, according to development data, is conservative compared to 27% in South Africa and 30% in Kenya. The bill also introduces a 4% development levy aimed at harmonising the multiplicity of taxes and levies paid by companies. It also maps out the plan to reduce the development levy to 2% in 2030, which will be devoted solely to funding the Nigerian Education Loan Fund, NEFUND, thereby phasing out the 2.5% education tax, the 0.25% National Agency for Science and Engineering Infrastructure tax, and the 1% National Information Technology Development Levy. Instead of all these earmarked taxes, the company will only pay a 4% development levy till 2029 and 2% afterward for the funding of Nigerian Education Loan Fund, a scheme that has benefitted no fewer than 10,000 students already.

This seem like a good idea on the long run for the common man if things can work as planned.

However, one thing that is obvious is the fact that before those small businesses grow bigger enough to enter the tax bracket, where will FG be getting revenue to fund governance?

Also, how will the FG make up for the shortfall in revenue for those exporters, manufacturers, IT and Agricultural firms they intend to give tax holiday?

I'm not being a naysayer here, but just trying to get understand the workability of this plan in yh short run when FG will need those taxes for running governance. Are they going to be borrowing loans like we are already doing?

raumdeuter:
Workings no dey ground ke? Yet Lagos was able to survive despite FG withholding LG allocations under Tinubu, Today without allocations Lagos state will still survive, You think say na air dem dey use cater for 20m people in Lagos

IGR increase without improvement in quality of life... Miss me with that.

Theflint1:
IGR increase without improvement in quality of life... Miss me with that.

You think there is no improvement, yet people stream there daily and ignore their home states

How Lags has not broken down with the steady stream of people into a limited area of land is the genius of Tinubu

raumdeuter:
PR is not real life.

So you think in 2027 How will that work? So you are assuming Atiku-Okowa would win, do one term and somehow Makinde will enter the equation

Or Tinubu would win 2023, and by 2027 another SW person like Makinde will be eligible for presidency?

Social media is not real life

Social media is not real life was also said about Peter Obi, and he managed to poll 6m votes (INEC declared)... southerners are jostling for PDP nomination come 2027, who says with the right negotiations Makinde couldn't have clinched it?

And I'm not saying Makinde would have necessarily won if he was on the ballot, but I think he'd have made a good showing.

raumdeuter:
You think there is no improvement, yet people stream there daily and ignore their home states

How Lags has not broken down with the steady stream of people into a limited area of land is the genius of Tinubu

Before Tinubu, Lagos was attracting Nigerians from across the country.

Theflint1:
Social media is not real life was also said about Peter Obi, and he managed to poll 6m votes (INEC declared)... southerners are jostling for PDP nomination come 2027, who says with the right negotiations Makinde couldn't have clinched it?

And I'm not saying Makinde would have necessarily won if he was on the ballot, but I think he'd have made a good showing.

Social Media is not real life was why Obi who was winning all Social media polls finished 3rd in an election. If SM was real life, Obi would be president now

In what permutation will PDP make Makinde Presidential candidate or VP in 2027. Was it with Atiku winning 2023, or vs Tinubu 2nd term for Makinde to succeed another SW man?

Good showing in what? Makinde knows he has no hopes in the near future to be president nor VP, Maybe around 2039 sha

raumdeuter:
How much tax was govt generating from this source before

I dont know
That's why I said it seems like the government is saying mehn you guys are too broke to tax, if it figures that it can cut rates this drastically whilst being essentially broke.

I interpret corporation tax cuts at the 51 mill+ level almost as begging MNCs to stay, with that leeway to recompute tax liability until the companies hit 15% looking suspiciously like a glaring loophole to me.

Theflint1:
Before Tinubu, Lagos was attracting Nigerians from across the country.

Warri used to attract Nigerians from all over the country too until it stopped

BREAKING: Kogi State Gov. Ahmed Usman Ododo Presents the budget proposal of N582,404,119,489 for the 2025 fiscal year to the Kogi State House of Assembly.

The governor disclosed that the 2025 “Budget of All Inclusive Development” earmarked N302,813,903,802 which is 48.01 for Capital Expenditure while N279,590,215,687 which is 51.99 is for Recurrent Expenditure.

The 2025 proposed budget, totaling N582,404,119,489 represents a 43.34% increase from the revised 2024 budget of N406,321,130,013.

#kogiglobalmedia

Cc: disstroy.


I want to keep many tabs on this man. He is acting funny these days

raumdeuter:
Warri used to attract Nigerians from all over the country too until it stopped

As far back as the 17th century, Lagos was already the most popular trading destination in the country, can't be compared to Warri that had a boom and bust cycle... Nothing concern people trooping into Lagos with Tinubu.