₦airaland Forum

Pastor Chris Oyakhilome issues a strong warning on Nigeria’s new tax law and the growing call to tax the rich more heavily. According to him, this approach may seem fair on the surface, but the real victims could be ordinary Nigerians and the poor.
In this video, we examine Pastor Chris’ argument that when governments increase taxes on the wealthy and big businesses, the burden is eventually transferred to consumers through higher prices for food, rent, transportation, and basic services. What looks like a tax on the rich may quietly become a tax on everyone else.
As Nigeria debates tax reforms and revenue generation, this message raises critical questions:
Who really pays when the rich are taxed more?
Do higher corporate and wealth taxes reduce poverty or worsen it?
How does taxation affect inflation, cost of living, and small businesses?
This video breaks down the economic logic behind Pastor Chris’ warning, explains how taxes are passed down the supply chain, and why policymakers must be careful when designing tax laws that affect businesses and investors.



https://www.youtube.com/watch?v=NwcOp5BIVZY?si=9p24iH7kuJm435WK

Government doesn't care who suffers from their evil laws all they are after na their pocket

Insightful, another round of inflation coming. It's going to hit hard.

Having a progressive tax system where those who have more, pay more is one of the very few ways of distributing wealth which ultimately results in a richer and fairer society.

The natural direction of wealth is to get accumulated (i.e those who have are more likely to get more making the rich richer and the poor poorer. Progressive taxation helps break that cycle and gives more people a chance

What we need to demand is good enforcement and that the tax revenues are used properly.

The new tax law is a fantasy. They still have a lot of work to do on it

It's obvious that the new tax will trigger a cost-push inflation on the long run and those to bear the brunt of it are the very poor and middle class Nigerians which the law on paper sought to grant reprieve.

Government has really not weighed the unintended consequences of this copy and past proposition. Because it works in developed climes does not guarantee its success in a country where there are no supporting social welfare scheme for the poor.

Las las, we go dey ok

You would think the government gives a damn about who it affects. All they care about is to have more money at their disposal to do the normal with it.

jedisco:
Having a progressive tax system where those who have more, pay more is one of the very few ways of distributing wealth which ultimately results in a richer and fairer society.

The natural direction of wealth is to get accumulated (i.e those who have are more likely to get more making the rich richer and the poor poorer. Progressive taxation helps break that cycle and gives more people a chance

What we need to demand is good enforcement and that the tax revenues are used properly.

But the new tax system is not progressive. In sense that poor doesn't pay tax, for example someone earning 800k or less will not pay tax; someone earning 1m pays income tax at 15% but someone earning 25m pays income tax at 25%. It is not truly progressive. It also encourage people to remain poor so that they won't pay tax.

galantjoe:
But the new tax system is not progressive. In sense that poor doesn't pay tax, for example someone earning 800k or less will not pay tax; someone earning 1m pays income tax at 15% but someone earning 25m pays income tax at 25%. It is not truly progressive. It also encourage people to remain poor so that they won't pay tax.

That's exactly what progressive taxation means. I.e people contribute more as they earn more.

Someone earning 800k a year is barely just scrapping by - that's less than a bag of rice for a full month of work. Someone on 25m has enough to spare even after paying 5m+ in taxes.

It's not encouraging people to be poor. Already, over 60% of Nigerians are poor and can't afford the basics. It's giving people the chance of living in a decent society with opportunities. The countries Nigerians japa to sustain their economies on steeper tax rates. The government should use the extra tax revenues to fund basics in the society. That way, everyone is better off.

A common misconception is that someone earning above a tax band would pay the full rate on their total income. What they'd actually pay tax on is the portion of their income above the treshold. In your example, someone earning 1m would pay 15% of tax on the portion of their pay above 800k i.e 15% of 200k which is 30k not on the whole 1m

Ok

It's like an armed robber saying he only robs rich people.

That's not the point.

The point is that you are a thief.

matify83:
It's obvious that the new tax will trigger a cost-push inflation on the long run and those to bear the brunt of it are the very poor and middle class Nigerians which the law on paper sought to grant reprieve.

Government has really not weighed the unintended consequences of this copy and past proposition. Because it works in developed climes does not guarantee its success in a country where there are no supporting social welfare scheme for the poor.

Las las, we go dey ok

What is it specifically about the tax policy that will cause inflation


Is the policy an increase?
If it is tell us the current tax rate in percentage and the new rate

If really you know what you are talking about just give two figures in percentage

Are Nigerians dumb. Starting from excess crude account, oil earnings, returned abacha loot and funds from subsidy removal. Please where did all these money go

I never knew some reasonable and intelligent writer like you are still on Nairaland
99% of people just react based on emotion and the sour of the moment in our society today. We are devoiced of the capacity to reason.
Listening to the sweet phonetics of Pastor Chris on this subject, people had already agreed with his myopic view about how Economics works.
From this video, its glaring the he doesn't have the basic understanding or knowledge of what progressive taxation entails.

Someone should remind him to stick to his preaching of the word of God.

The sad part is the gullible amongst us had already taken his views on this subject hook line and sinker

Stack illiterates everywhere

jedisco:
Having a progressive tax system where those who have more, pay more is one of the very few ways of distributing wealth which ultimately results in a richer and fairer society.

The natural direction of wealth is to get accumulated (i.e those who have are more likely to get more making the rich richer and the poor poorer. Progressive taxation helps break that cycle and gives more people a chance

What we need to demand is good enforcement and that the tax revenues are used properly.

Gotocourt:
Insightful, another round of inflation coming. It's going to hit hard.

Taxation doesn't cause inflation.
Quite the opposite.

So, what is Pastor Chris recommendation?Should Tinubu apply equal taxes ? Arm-chair critics !

jedisco:
That's exactly what progressive taxation means. I.e people contribute more as they earn more.

Someone earning 800k a year is barely just scrapping by - that's less than a bag of rice for a full month of work. Someone on 25m has enough to spare even after paying 5m+ in taxes.

It's not encouraging people to be poor. Already, over 60% of Nigerians are poor and can't afford the basics. It's giving people the chance of living in a decent society with opportunities. The countries Nigerians japa to sustain their economies on steeper tax rates. The government should use the extra tax revenues to fund basics in the society. That way, everyone is better off.

A common misconception is that someone earning above a tax band would pay the full rate on their total income. What they'd actually pay tax on is the portion of their income above the treshold. In your example, someone earning 1m would pay 15% of tax on the portion of their pay above 800k i.e 15% of 200k which is 30k not on the whole 1m

See agbado boy defending his master online, can't these people see that nigerians cannot afford a cup of alomo bitters again'

On a more serious note, thanks, even I have learned a lot. But the thing is, in a country where most people don't pay tax, and most don't like seeing the big picture, people just reject good things out of hand.

Meanwhile, oil prices are set to keep falling, and it will take ages to fix agric and minerals to the level where we was a major producer, and even then that may not help us much...so tax

Also, it helps us to become a nation of saner people...living in a sane country of actual rules.

I don't support APC, but for once, let's start somewhere, or we keep on borrowing. (Sadly the tax thing won't stop borrowing, but it will hopefully reduce it). Oil is not going to climb up to 100 dollars per barrel, and alternative energy gets better and better

food4tot:
Taxation doesn't cause inflation.
Quite the opposite.

Good to hear this. But Nigeria defies common economic principles, lots of policies have failed . Fingers crossed 🤷🏿

This same man warned against Facebook, Covid vaccine and so on.

aribisala0:
What is it specifically about the tax policy that will cause inflation


Is the policy an increase?
If it is tell us the current tax rate in percentage and the new rate

If really you know what you are talking about just give two figures in percentage

I will spell it out for you to understand.
Don't be carried away by the reprieve it claims to offer to the poor.

1- Did you hear when it was said that even prostitutes will pay their taxes?
Are these the people that government should be concentrating on if they have no alterior motive.

2- The law also stipulates that no TIN no bank account. Don't you suspect foul play at this junction?

3- small companies whose total turn over is less than 50m are said to be exempt from CIT. What government did not tell you explicitly is that, they are still required to file their financial statements through the TaxPro Max portal each year to maintain compliance status. However, if the company fails to file returns on time, the benefit of N50million threshold is lost. Trust that most companies will not keep a good enough account of their financial transactions for the year to qualify for the tax holiday

4-The large companies and high salary individuals whose taxes has risen to a 25% at the highest point are mostly the owners of these big companies and they will just plough back the taxes as cost of production thereby causing the cost-push inflation I earlier highlighted.

What the government did not take into cognizance is that the rich always have a way of avoiding these taxes as they can funnel their salaries and allowance into their company expenses and it is legal. Ask Trump why he brags about not paying taxes and he's not in jail. It's called Tax loopholes

5- with the Cost-push inflation, who takes the hit , it obviously the poor and middle class in the society.

6- This new tax policy to my mind is going to roll back the cashless policy as most Nigerians would start demanding cash payments to avoid exceeding the 800k threshold.

7- Other obnoxious clauses have also been introduced into the tax law that we are still oblivious of and it has been gazetted. It's only in court you may find out and it may be too late by then.

No government should ever be trusted. Heed this advice for the peace of your mind.

See

Prophit:
Pastor Chris Oyakhilome issues a strong warning on Nigeria’s new tax law and the growing call to tax the rich more heavily. According to him, this approach may seem fair on the surface, but the real victims could be ordinary Nigerians and the poor.
In this video, we examine Pastor Chris’ argument that when governments increase taxes on the wealthy and big businesses, the burden is eventually transferred to consumers through higher prices for food, rent, transportation, and basic services. What looks like a tax on the rich may quietly become a tax on everyone else.
As Nigeria debates tax reforms and revenue generation, this message raises critical questions:
Who really pays when the rich are taxed more?
Do higher corporate and wealth taxes reduce poverty or worsen it?
How does taxation affect inflation, cost of living, and small businesses?
This video breaks down the economic logic behind Pastor Chris’ warning, explains how taxes are passed down the supply chain, and why policymakers must be careful when designing tax laws that affect businesses and investors.



https://www.youtube.com/watch?v=NwcOp5BIVZY?si=9p24iH7kuJm435WK

Oyakilome should mind his ponzi schemes! Let him leave governance for those in government!

matify83:
I will spell it out for you to understand.
Don't be carried away by the reprieve it claims to offer to the poor.

1- Did you hear when it was said that even prostitutes will pay their taxes?
Are these the people that government should be concentrating on if they have no alterior motive.

2- The law also stipulates that no TIN no bank account. Don't you suspect foul play at this junction?

3- small companies whose total turn over is less than 50m are said to be exempt from CIT. What government did not tell you explicitly is that, they are still required to file their financial statements through the TaxPro Max portal each year to maintain compliance status. However, if the company fails to file returns on time, the benefit of N50million threshold is lost. Trust that most companies will not keep a good enough account of their financial transactions for the year to qualify for the tax holiday

4-The large companies and high salary individuals whose taxes has risen to a 25% at the highest point are mostly the owners of these big companies and they will just plough back the taxes as cost of production thereby causing the cost-push inflation I earlier highlighted.

What the government did not take into cognizance is that the rich always have a way of avoiding these taxes as they can funnel their salaries and allowance into their company expenses and it is legal. Ask Trump why he brags about not paying taxes and he's not in jail. It's called Tax loopholes

5- with the Cost-push inflation, who takes the hit , it obviously the poor and middle class in the society.

6- This new tax policy to my mind is going to roll back the cashless policy as most Nigerians would start demanding cash payments to avoid exceeding the 800k threshold.

7- Other obnoxious clauses have also been introduced into the tax law that we are still oblivious of and it has been gazetted. It's only in court you may find out and it may be too late by then.

No government should ever be trusted. Heed this advice for the peace of your mind.

TIN requirements for banking ensures compliance.
I don't see anything special about this new tax law, but I'm pretty sure it's not going to cause inflation or anything remotely related to that. The idea that this will roll back the gains of cashless policy is unfounded. Not every credit alert is a revenue. You pay tax on your income, not on the total amount of money that gets into your account. The government are aware of this.
You didn't answer the question by the original poster about the current rate and the new one. What exactly is the difference that it will cause a cost-push inflation?

matify83:
I will spell it out for you to understand.
Don't be carried away by the reprieve it claims to offer to the poor.

1- Did you hear when it was said that even prostitutes will pay their taxes?
Are these the people that government should be concentrating on if they have no alterior motive.

2- The law also stipulates that no TIN no bank account. Don't you suspect foul play at this junction?

3- small companies whose total turn over is less than 50m are said to be exempt from CIT. What government did not tell you explicitly is that, they are still required to file their financial statements through the TaxPro Max portal each year to maintain compliance status. However, if the company fails to file returns on time, the benefit of N50million threshold is lost. Trust that most companies will not keep a good enough account of their financial transactions for the year to qualify for the tax holiday

4-The large companies and high salary individuals whose taxes has risen to a 25% at the highest point are mostly the owners of these big companies and they will just plough back the taxes as cost of production thereby causing the cost-push inflation I earlier highlighted.

What the government did not take into cognizance is that the rich always have a way of avoiding these taxes as they can funnel their salaries and allowance into their company expenses and it is legal. Ask Trump why he brags about not paying taxes and he's not in jail. It's called Tax loopholes

5- with the Cost-push inflation, who takes the hit , it obviously the poor and middle class in the society.

6- This new tax policy to my mind is going to roll back the cashless policy as most Nigerians would start demanding cash payments to avoid exceeding the 800k threshold.

7- Other obnoxious clauses have also been introduced into the tax law that we are still oblivious of and it has been gazetted. It's only in court you may find out and it may be too late by then.

No government should ever be trusted. Heed this advice for the peace of your mind.

You are ranting ignorantly

So prostitutes paying taxes is your problem?

What will lead to cost push inflation? Prostitutes paying taxes? You are brilliant

What else ?

What products? Petrol, rice cement or garri?

How?


You clearly have no clue what the new tax law says

Your concern is prostitutes

jedisco:
Having a progressive tax system where those who have more, pay more is one of the very few ways of distributing wealth which ultimately results in a richer and fairer society.

The natural direction of wealth is to get accumulated (i.e those who have are more likely to get more making the rich richer and the poor poorer. Progressive taxation helps break that cycle and gives more people a chance

What we need to demand is good enforcement and that the tax revenues are used properly.

And has the government ever distributed any wealth equally??

They live beyond their means and keep the people in perpetual slavery

Isn't it worrisome that an average working Nigerian can't even live a good life without getting their hands soiled?

aribisala0:
You are ranting ignorantly

So prostitutes paying taxes is your problem?

What will lead to cost push inflation? Prostitutes paying taxes? You are brilliant

What else ?

What products? Petrol, rice cement or garri?

How?


You clearly have no clue what the new tax law says

Your concern is prostitutes

I
I thought I was dealing with someone who's abreast with the news.

Clearly, you are ignorant and unwilling to logically follow a superior argument.

Were you living under the rock when Taiwo Oyedele, the man saddleed with the responsibility of orientation on the new tax reforms made the same assertion that I quoted?.

Why didn't you ask the Federal government if prostitutes was their problem.?



I can see that you are out to spew invective and not ready to engage in an intellectual discuss which I presume is way out of your capability.

Take a flight!

matify83:
I
I thought I was dealing with someone who's abreast with the news.

Clearly, you are ignorant and unwilling to logically follow a superior argument.

Were you living under the rock when Taiwo Oyedele, the man saddleed with the responsibility of orientation on the new tax reforms made the same assertion that I quoted?.

Why didn't you ask the Federal government if prostitutes was their problem.?



I can see that you are out to spew invective and not ready to engage in an intellectual discuss which I presume is way out of your capability.

Take a flight!

The question was cost push inflation

How will taxing prostitutes cause this?

You dropped the phrase cost push inflation

As a consequence of the tax policy

I asked you how and you are talking about prostitutes

DeOTR:
TIN requirements for banking ensures compliance.
I don't see anything special about this new tax law, but I'm pretty sure it's not going to cause inflation or anything remotely related to that. The idea that this will roll back the gains of cashless policy is unfounded. Not every credit alert is a revenue. You pay tax on your income, not on the total amount of money that gets into your account. The government are aware of this.
You didn't answer the question by the original poster about the current rate and the new one. What exactly is the difference that it will cause a cost-push inflation?

Thanks for your civility!

Ordinarily, an increase in personal income tax will not cause inflation.
Why: taxes reduces the disposable income of the workforce and there is decreased purchasing power leading to a stability or fall in cost of goods and services. (The president already promised this)
Won't this add to our misery?

However, employing the same tactic to the super rich and big businesses does not generate the same results as increased taxes on manufacturing adds to the cost of production just the way increasing workers salary is also a factor in the cost of production. Hence the cost- push inflation added to the decreased purchasing power of the nation since the tax net is now wider to catch everyone.

For those thinking they would automatically be exempt if they don't have a means of income. This only applies after you file your tax clearance. If you don't, you will be treated like a defaulters.

Max24:
So, what is Pastor Chris recommendation?Should Tinubu apply equal taxes ? Arm-chair critics !

What I understand he was trying to said is that the government should not over tax the rich, because if they do, the rich will eventually push the consequences to the poor.

More emphasis on Riches and Poverty.

I find most of Pastor Chris' message to be for spiritually immature Christians due to his ministry's emphasis on prosperity.

Jesus Christ did not come to make poor people rich, or to relieve oppressed citizens from the bondage of their governments.

He came to deliver mankind from the power of Satan, death and from the bondage of sin and to invite us to be his disciples by daily taking up his cross (denying our soul-life) and following him.