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https://www.youtube.com/watch?v=6FyeZ68rOCI?si=-S7_F_ofo6ExQCnf

FG Introduces 5% Fuel Tax and New Income Tax Rules Under the Harmonized Tax Act

Punch Newspaper shared a video on their official X handle (formerly Twitter) yesterday, explaining details of the new Harmonized Tax Act. The post has since sparked strong reactions from Nigerians.

In the video, Punch wrote:

“So This Happened, (EP 334) reviews: FG introduces new 5% fuel tax under the Harmonized Tax Act.

Starting January 2026, Nigerians will pay an additional 5% tax on every litre of fuel, under a new law signed by President Tinubu. With fuel already costly, the levy is expected to further increase expenses for motorists, transporters, and businesses that rely heavily on fuel.”

The Nigerian Harmonized Tax Act 2025, signed into law in June, introduces a 5% surcharge on fossil fuels such as petrol and diesel beginning January 1, 2026. The aim is to generate funds to support the transition to clean energy.

Certain fuels, however, are exempt from the levy — including household kerosene, cooking gas (LPG), compressed natural gas (CNG), and other renewable energy sources. According to estimates, the surcharge could generate about ₦796 billion annually from petrol alone.

But that’s not the only major change coming in 2026. The anchor of Punch’s “So This Happened” show further explained that starting January 2026, Nigerians earning above ₦800,000 annually — roughly ₦66,000 per month — will now be required to pay personal income tax. This policy will not only apply to those in formal employment but also to self-employed individuals and artisans. Whether you are a tailor, carpenter, freelancer, or bricklayer, as long as you earn above ₦800,000 per year, you will now be taxed.

To ensure compliance, the Federal Inland Revenue Service (FIRS) has been mandated to work closely with banks to automate tax deductions, making evasion far more difficult. For many Nigerians who have never had to deal with taxation before, this will be an entirely new reality.

According to President Bola Ahmed Tinubu, the goal is to widen Nigeria’s tax base, reduce overreliance on crude oil revenue, and build a more sustainable system for funding infrastructure, healthcare, education, and other public services. The President stressed that most countries around the world rely heavily on tax revenue, and Nigeria must align with global practices to secure long-term economic stability.

While the government insists these measures are necessary for progress, critics fear the combined effect of higher fuel costs and new income tax rules will worsen the financial burden on everyday Nigerians.

Watch the video, listen carefully, and share your thoughts in the comments.

https://www.facebook.com/share/v/14JSPL63VGV/

Summary:
From January 2026, Nigerians will face two major tax changes under the Harmonized Tax Act signed by President Bola Ahmed Tinubu. A new 5% surcharge will be added to petrol and diesel to fund clean energy projects, while anyone earning above ₦800,000 annually — whether in formal jobs or informal trades — will now be required to pay personal income tax. The FIRS will work with banks to automate deductions, making tax evasion harder. Tinubu says the move aims to widen Nigeria’s tax base, reduce reliance on oil, and fund public services, but many Nigerians fear it will worsen the rising cost of living.

I am loving the multiple taxation. I was just laughing when i got the info, didn't know it will online this soon. You buy 1 litre of fuel, you pay tinubu #42.

We are yet to see anything. When January comes and people come to really realize there are several interpretations of the tax bill not on the internet, fresh wailing will commence

Tinubu
Keep taxing us joor
Finish us with taxes
We pay with joy, on your mandate we shall stand

..the taxing guru strategist..taxing those he already destroyed their livelihood..

..tilumbu must go..

Hail the great TINUBULATION. The master producer of tribulation.

I hope Tinubu supporters are exempted from the tax.

So to buy fuel we have to pay Tax? Gaskiya the next president has so many things to scrap and undo. Haba.
The aim of Government should be how to make the citizens richer. How many dollar millionaires and Billionaires they must raise in their time. And how many extreme poor they make sufficient and comfortable.

Another Tax?


Hmmm!

Very soon Tinubu will ask his supporters to pay tax for supporting him to be the president of Nigeria.

Just bet me , they gonna learn in a harder way.


🤣🤣🤣🤣🤣🤣🤣

Tinubu administration has to come to an end before he ends the life of many citizens. He does not care how he generate money. I just dey pity those people saying instead of North Tinubu should continue. Instead of you thinking about your future, your family and friends you are still thinking about North or South.
Just imagine Tinubu second tenure. It will be very disastrous.

Don’t worry guys, the tax doesn’t apply to APC and their voters

The tax master himself, This government will make your life miserable. Another lie of meeting targets.

Zionmdde:
I am loving the multiple taxation. I was just laughing when i got the info, didn't know it will online this soon. You buy 1 litre of fuel, you pay tinubu #42.

We are yet to see anything. When January comes and people come to really realize there are several interpretations of the tax bill not on the internet, fresh wailing will commence

Tinubu
Keep taxing us joor
Finish us with taxes
We pay with joy, on your mandate we shall stand

Spot on brother, most them voluntarily will come out to protest hunger with anger.

Too much taxation destroys an economy, just look at Britain, a lot of millionaires fled due to excessive taxation.

clean energy, , just another excuse to siphon money. And its not only Nigeria, another one is Kenya, we saw the result of unAfrican policies.

WEP is really working, you will own nothing and be happy.

They keep choking the masses, after breaking their spirit, its time to choke upon choke. .


Can i deduce, perhaps, with increasing taxation, leading to increasing cost, could result in stagnant income, capital flight, more inflation, devaluation of the currency, and maybe a negative feedback loop,

“The care of human life and happiness is the only legitimate object of good government." ( Jeffersonian Credo ).

“No nation ever grew more prosperous by taxing its citizens beyond their capacity to pay.” - former British Prime Minister Margaret Thatcher

Tinubu has shown you how the tax calculator works. Now it's time to implement it. More shege promax still loading

Thank God say air,sun and moon are natural if not Dem go tax am under dis govt

This guy no go kill us with tax,, HABA!!!!


2026 go harder ooo

This has to be a lie. The price of fuel is already overboard for Nigerians. You can’t make it any worse at this point. Even if Tinubu is my father, I seriously condemn this

This is how the Ewedu strategist finished/and he's still fonishing Lagos state with Alpha Beta!

What a pilfering strategist with a touch of amalacentric undertone!

Pay more to empower the politicians. Tinubu increases our pains to the benefit of the politicians.

this taxation will favour me and my family.

its been long i heard or saw this kind of comment from agbadorians

Bandits in power. This man go kill us with tax. More money for them to embezzle. We are too docile in this country.

I don't understand the part that says those earning from #66,000 above have to pay personal income tax... I thought the other tax law says individuals earning #108,000 or less are exempted from paying tax?

Is this another law or a hidden clause of the previous one? Which clause will be obeyed then?

Fatbam005:
Thank God say air,sun and moon are natural if not Dem go tax am under dis govt

Shebi you joined in supporting him into office, enjoy what you supported...

When some of us were shouting that this man is the worst person to make president, some of you thought we just hated him or his tribe...

Tinubu is the weapon fashioned against Nigerians.If the man na kpain all, na small e go remain.

NOETHNICITY:
This has to be a lie. The price of fuel is already overboard for Nigerians. You can’t make it any worse at this point. Even if Tinubu is my father, I seriously condemn this

No o, don't don't condemn him, keep supporting him like you have been doing,...

Tinubu once again dipping his insatiable hands into the pockets of Nigerians.

The only way he knows how to generate revenue is to dip his hands into the pockets of hapless Nigerians and take their monies in the guise of Taxes and levies, while they cry and lament in pains. No other idea.

Oil revenue is no longer enough for the insatiable politicians. They must increase their salaries, buy Prado Jeeps and send their girlfriends to Dubai..

There is no difference between the NURTW thugs intimidating motorists under Oshodi bridge and Tinubu.

Nigerians, this scourge must not go beyond 2027. Insha Allah.

His second tenure (God forbids he gets it) would be worse than hell..

Nice one! We must save our environment. Use Solar, LPG, CNG, and kerosene.

I do not disagree with this tax but I think tha states should do this

If the FG does this they take the Money to Abuja and when they share the North gets more by virtue of more LGAs and states

NOETHNICITY:
This has to be a lie. The price of fuel is already overboard for Nigerians. You can’t make it any worse at this point. Even if Tinubu is my father, I seriously condemn this

Everything tinubu does is good and excellent according to una.

He is una god na.

NOETHNICITY:
This has to be a lie. The price of fuel is already overboard for Nigerians. You can’t make it any worse at this point. Even if Tinubu is my father, I seriously condemn this

Hand don meet this one.

Urchiniscos repeat after me..'Tinubu Tax will favour me and my family..Insha Allah'..

First time in my life in the NL front page , nobody is supporting tinubu .

We are getting there

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The same excessive taxation that made USA seceed from Europe. The same excessive taxation that sent Kenyans to the streets. Like Amechi said, "Nigerians don't react to anything. They will only grumble silently and move on in pain".

They should make it 15%.
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