₦airaland Forum

Has anyone sat down to read the new tax law and compare it with the current tax law.

The new tax law does not tax you if you earn 800k and below in a year. If you earn 840k per year, you tax will be on only 40k which is around 6-7k per year.

In the current tax, if you are earning 840k per year, your 840k isn't fully exempted, your yearly tax is 40k per year.

This is simple...poor people will pay less in the new tax law

The rich are using poor people to fight the new tax law, it is painful to watch.

No

Prices of things would increase as CEOs would spread taxes into prices of their commodities

Poor man would still collect

But the poor will hear shege...

APC data boys are so dumb

motymop:
Has anyone sat down to read the new tax law and compare it with the current tax law.

The new tax law does not tax you if you earn 800k and below in a year. If you earn 840k per year, you tax will be on only 40k which is around 6-7k per year.

In the current tax, if you are earning 840k per year, your 840k isn't fully exempted, your yearly tax is 40k per year.

This is simple...poor people will pay less in the new tax law

The rich are using poor people to fight the new tax law, it is painful to watch.

Current minimum wage is 70k multiply by 12 it's equal to 840k. In other words every Nigeria worker will pay tax. Stop fooling yourself. In reality nobody is exempted. It's just a cunning way to play Nigerians

Kdon2:
Current minimum wage is 70k multiply by 12 it's equal to 840k. In other words every Nigeria worker will pay tax. Stop fooling yourself. In reality nobody is exempted. It's just a cunning way to play Nigerians

There we're paying tax before but very expensive now it is cheaper

Sirmwill:
No

Prices of things would increase as CEOs would spread taxes into prices of their commodities

Poor man would still collect

What does this even mean?

motymop:
There we're paying tax before but very expensive now it is cheaper

Which expensive tax were dey paying before?? Have you asked teachers whether they were paying tax before?

motymop:
Has anyone sat down to read the new tax law and compare it with the current tax law.

The new tax law does not tax you if you earn 800k and below in a year. If you earn 840k per year, you tax will be on only 40k which is around 6-7k per year.

In the current tax, if you are earning 840k per year, your 840k isn't fully exempted, your yearly tax is 40k per year.

This is simple...poor people will pay less in the new tax law

The rich are using poor people to fight the new tax law, it is painful to watch.

Yes, as long as poor people manufacture everything they need by themselves, plant their own food crop, build their own car etc

Vehicle dealer will add to selling price to be able to pay the tax

Vehicle buyer will pay the price and transfer the charges to the person he's giving the vehicle to in form of hire purchase or daily pay

The driver will have no option than to increase the transport fare and at the end of the day, the poor pay the price while the rich are not affected by the tax

All the heavy taxes that dangote is paying every year, he already add it to the selling prices of his products.

motymop:
What does this even mean?

Clock it

motymop:
Has anyone sat down to read the new tax law and compare it with the current tax law.

The new tax law does not tax you if you earn 800k and below in a year. If you earn 840k per year, you tax will be on only 40k which is around 6-7k per year.

In the current tax, if you are earning 840k per year, your 840k isn't fully exempted, your yearly tax is 40k per year.

This is simple...poor people will pay less in the new tax law

The rich are using poor people to fight the new tax law, it is painful to watch.

If you want to position yourself as an educator

You must write in clear and simple language


What do you mean by the expression

YOUR YEARLY TAX IS 40K

that is misleading

The truth is
If there are no other exemptions
The individual pays tax on the excess for example if the excess is 40k the tax at 20% is 8k or about. 700 naira a month

You are an example of the blind leading the blind

The law also allows exemption on rent up to 500k
Which means if he pay rent e.g 200k a year he does not pay one kobo in tax

The new tax laws, especially the reviewed income tax, are just smoke and mirrors. On the surface, it seems to benefit the poor by 'emphasising' thier poverty and giving the impression that they would be protected.

But the reality is that a 'poor' person earning 300,000 in 2014 and paying a tax of 7%, had more purchasing power than a person earning 800,000 and not paying any tax today.

For context, N300,000 in 2014 was about $1600. Even with 7% income tax, the person would still have a value of about $1500. N800,000 today is equivalent to $500... let that sink in.

What about purchasing power? N300,000 in 2014 would buy you about 37 bags of rice. N800,000 today barely gets you 11 bags of rice.

In 2014, a tokunbo Toyota camry big daddy cost about 1.2m, so it would take about 4 years to get one assuming all income was saved to buy a car. Today, that same Toyota camry big daddy averages N8m... so it would take 10 years savings to buy that same car today.


If the government truly had 'poor' people in mind, than the tax payment should start from N3,000,000 at 7% income tax.

Also, political office holders must compulsorily make thier assets and tax payments public on designated official websites.

aribisala0:
If you want to position yourself as an educator

You must write in clear and simple language


What do you mean by the expression

YOUR YEARLY TAX IS 40K

that is misleading

The truth is
If there are no other exemptions
The individual pays tax on the excess for example if the excess is 40k the tax at 20% is 8k or about. 700 naira a month

You are an example of the blind leading the blind

The law also allows exemption on rent up to 500k
Which means if he pay rent e.g 200k a year he does not pay one kobo in tax

My God why do type without reading or thinking

I was comparing the old tax from the new tax

In the current tax(old tax), you pay almost 40k while in the new tax, you pay around 6-7k

motymop:
My God why do type without reading or thinking

I was comparing the old tax from the new tax

In the current tax(old tax), you pay almost 40k while in the new tax, you pay around 6-7k

What you are thinking and what you say are different
Iam not supposed to read your mind
That is the difference between effective communication

You said
YOUR YEARLY TAX IS 40K per year

motymop:
In the current tax, if you are earning 840k per year, your 840k isn't fully exempted, your yearly tax is 40k per year.

did I lie against you?
Those are your words

You were wrong
Admit it
Take responsibility and apologise

Stop this typical Nigerian behaviour of digging in when you know you are wrong

Communicate in simple clear and unambiguous language

The question is

Was your choice of words misleading? How could you have worded it differently
Accept correction with grace

1vandragon:
The new tax laws, especially the reviewed income tax, are just smoke and mirrors. On the surface, it seems to benefit the poor by 'emphasising' thier poverty and giving the impression that they would be protected.

But the reality is that a 'poor' person earning 300,000 in 2014 and paying a tax of 7%, had more purchasing power than a person earning 800,000 and not paying any tax today.

For context, N300,000 in 2014 was about $1600. Even with 7% income tax, the person would still have a value of about $1500. N800,000 today is equivalent to $500... let that sink in.

What about purchasing power? N300,000 in 2014 would buy you about 37 bags of rice. N800,000 today barely gets you 11 bags of rice.

In 2014, a tokunbo Toyota camry big daddy cost about 1.2m, so it would take about 4 years to get one assuming all income was saved to buy a car. Today, that same Toyota camry big daddy averages N8m... so it would take 10 years savings to buy that same car today.


If the government truly had 'poor' people in mind, than the tax payment should start from N3,000,000 at 7% income tax.

Also, political office holders must compulsorily make thier assets and tax payments public on designated official websites.

In 2014, minimum wage in Nigeria was 18k per month. That is 96 usd per month. In a year, that is around 216k,( $1200) per year. Your tax was ₦2,160/year,

if you were earning 300k per year($1600), that means, your monthly pay was 25k per month, you were poor and your tax was ₦3,000 per year.

Nobody earning 18k or 25k per month could afford a big daddy or even any car in 2014.

After 2014, there was a new tax law and any one in the Finance Act 2020 which exempted anyone receiving minimum wage from tax.

Inflation came and yes minimum wage got increased but value reduced

Minimum wage is 70k( $50), yearly is 840k($597) in the current law with all the reduction, you pay 40k per year.

In the new if you earn minimum wage, you pay only 4-7k per year, if you use all your reliefs, you will literally pay zero in tax.

aribisala0:
What you are thinking and what you say are different
Iam not supposed to read your mind
That is the difference between effective communication

You said
YOUR YEARLY TAX IS 40K per year




did I lie against you?
Those are your words

You were wrong
Admit it
Take responsibility and apologise

Stop this typical Nigerian behaviour of digging in when you know you are wrong

Communicate in simple clear and unambiguous language

The question is

Was your choice of words misleading? How could you have worded it differently
Accept correction with grace

You are still arguing again when you are wrong.

In the current tax law, a minimum wager is paying around 40k per year in taxes( 3400 per month in taxes)

In the new tax which will be implemented in 2026, minimum wagers will pay 4-7k per year.

Can you show where I was wrong or you can not comprehend things.

motymop:
In 2014, minimum wage in Nigeria was 18k per month. That is 96 usd per month. In a year, that is around 216k,( $1200) per year. Your tax was ₦2,160/year,

if you were earning 300k per year($1600), that means, your monthly pay was 25k per month, you were poor and your tax was ₦3,000 per year.

Nobody earning 18k or 25k per month could afford a big daddy or even any car in 2014.

After 2014, there was a new tax law and any one in the Finance Act 2020 which exempted anyone receiving minimum wage from tax.

Inflation came and yes minimum wage got increased but value reduced

Minimum wage is 70k( $50), yearly is 840k($597) in the current law with all the reduction, you pay 40k per year.

In the new if you earn minimum wage, you pay only 4-7k per year, if you use all your reliefs, you will literally pay zero in tax.

Your explanation simply validates my position about how the new income tax is simply smoke and mirrors and addresses surface issues rather than bringing actual relief to the poor.

By whatever comparative measurement you use, those paying taxes on minimum wage were far better off than those on minimum wage who would enjoy tax relief from 2026.

If the government is truly desirous of 'protecting' the poor as it likes to deceptively proclaim, then the exceptions should start from a higher point comparative to the period before the apc calamity took over at the centre. Or are the reforms not meant to make life better than what they met?

N.B. anyone earning 300k and below with the old tax paid 7%, and not 10%.

motymop:
You are still arguing again when you are wrong.

In the current tax law, a minimum wager is paying around 40k per year in taxes( 3400 per month in taxes)

In the new tax which will be implemented in 2026, minimum wagers will pay 4-7k per year.

Can you show where I was wrong or you can not comprehend things.

You go explain explain explain


You said
YOUR YEARLY TAX IS 40K per year

motymop:
In the current tax, if you are earning 840k per year, your 840k isn't fully exempted, your yearly tax is 40k per year.

did I lie against you?
Those are your words

Did you say that? Yes or no?

Is it true or false

You are saying

Let me explain

Don't explain

obonujoker:
Which expensive tax were dey paying before?? Have you asked teachers whether they were paying tax before?

So you dont know teachers pay Tax. It is obvious you have never paid one kobo of tax in your life.

Parasite citizen

aribisala0:
You go explain explain explain


You said
YOUR YEARLY TAX IS 40K per year




did I lie against you?
Those are your words

Did you say that? Yes or no?

Is it true or false

You are saying

Let me explain

Don't explain

Under the new tax law, income up to ₦800k per year is exempt.

If someone earns ₦840k per year, only ₦40k is taxable, not the full amount. At 20% tax, that’s about ₦8k per year around 700 per month before other reliefs like rent exemptions. Under the current system, low-income earners pay more effective tax.

the Bottom line is that the new law reduces tax burden for poor people.

1vandragon:
Your explanation simply validates my position about how the new income tax is simply smoke and mirrors and addresses surface issues rather than bringing actual relief to the poor.

By whatever comparative measurement you use, those paying taxes on minimum wage were far better off than those on minimum wage who would enjoy tax relief from 2026.

If the government is truly desirous of 'protecting' the poor as it likes to deceptively proclaim, then the exceptions should start from a higher point comparative to the period before the apc calamity took over at the centre. Or are the reforms not meant to make life better than what they met?

N.B. anyone earning 300k and below with the old tax paid 7%, and not 10%.

You are conflating tax policy with economic outcomes. A tax law cannot reverse inflation, FX collapse, or wage erosion. What it can do is decide who carries the tax burden.

Compared to the old system, the new law reduces or eliminates income tax for low earners. That is a structural improvement in tax design regardless of how bad the economy is.

Saying people were richer in 2014 does not negate the fact that the poor now pay less tax than before. Both statements can coexist.

motymop:
Under the new tax law, income up to ₦800k per year is exempt.

If someone earns ₦840k per year, only ₦40k is taxable, not the full amount. At 20% tax, that’s about ₦8k per year around 700 per month before other reliefs like rent exemptions. Under the current system, low-income earners pay more effective tax.

the Bottom line is that the new law reduces tax burden for poor people.

The bottomline is your original statement was wrong
Be humble
Admityou were wrong
Stop explaining

aribisala0:
The bottomline is your original statement was wrong
Be humble
Admityou were wrong
Stop explaining

i was not wrong and i am not humble...end of discussion.

motymop:
You are conflating tax policy with economic outcomes. A tax law cannot reverse inflation, FX collapse, or wage erosion. What it can do is decide who carries the tax burden.

Compared to the old system, the new law reduces or eliminates income tax for low earners. That is a structural improvement in tax design regardless of how bad the economy is.

Saying people were richer in 2014 does not negate the fact that the poor now pay less tax than before. Both statements can coexist.

Tax policies have a direct and significant influence on economic outcomes, from savings to income distribution. Afterall, why bother with tax reforms if they would have no economic impact? What is the essence of the new tax policies?

Yes, there is a structural change in the tax design, but the improvements are cosmetic because the reality is that the masses, who are the essence of governance, are not getting a better deal.

You sound as if the tax exemption is some kind of new and exceptional policy. Tax exemption already existed in one way or the other, and this administration has not done anything new or spectacular by maintaining it in the new Act. My position remains that it does not go far enough to do what the government thinks it wants it to do.

The bottom line is that given the rhetoric of this administration about how the new laws are super beneficial to the poor, in reality, the economic situation of the poor has not changed as prior economic misadventures by this same government has made whatever benefits that would have accrued from the exemptions, a mirage.

And by the way, what is wrong in increasing the tax exemption range and reducing the tax rates?

motymop:
i was not wrong and i am not humble...end of discussion.

Maybe you should check very well the discussion just started

You. We're wrong
Very wrong
Totally wrong
Ignorant and wrong

You said
YOUR YEARLY TAX IS 40K per year

motymop:
In the current tax, if you are earning 840k per year, your 840k isn't fully exempted, your yearly tax is 40k per year.

Very wrong

my boy

What about for business people?

loffyloffy:
So you dont know teachers pay Tax. It is obvious you have never paid one kobo of tax in your life.

Parasite citizen

Dumbsky....

Teachers pay tax, those with low salaries even pay tax, same as other artisans, by paying tax to government and agbero money

Now your government wants to increase it.

motymop:
There we're paying tax before but very expensive now it is cheaper

Ok

obonujoker:
Dumbsky....

Teachers pay tax, those with low salaries even pay tax, same as other artisans, by paying tax to government and agbero money

Now your government wants to increase it.

How dumb are you really? Or you are just pretending to be dumb for the sake of propaganda.

Teachers will definitely pay less tax going forward than what they pay now.

Wirh the existing law you pay a flat tax rate, weather ur income from the formal sector is 50 naira or 50 million.

In the new tax law, you only pat taxes for income above 800k a year, and the rate is progresive between 15 to 25%.

You also have tax relieve for rent etc.

Yet you are here, openening your lazy wide mouth spreading things that are not true.

I pronounce a curse on your lying lips, unles you are soeaking out of ignorance, if you are here deliberately spreading confussion, it shall not be well with you

loffyloffy:
How dumb are you really? Or you are just pretending to be dumb for the sake of propaganda.

Teachers will definitely pay less tax going forward than what they pay now.

Wirh the existing law you pay a flat tax rate, weather ur income from the formal sector is 50 naira or 50 million.

In the new tax law, you only pat taxes for income above 800k a year, and the rate is progresive between 15 to 25%.

You also have tax relieve for rent etc.

Yet you are here, openening your lazy wide mouth spreading things that are not true.

I pronounce a curse on your lying lips, unles you are soeaking out of ignorance, if you are here deliberately spreading confussion, it shall not be well with you

If what I say come true at last, then the curse is returing back to you in the mighty name of Jesus... I return all you wish back to your evil supporting politician head.

Infact, for supporting corrupt politicians you are already under the curse and vengeance of the almighty God.

1vandragon:
Tax policies have a direct and significant influence on economic outcomes, from savings to income distribution. Afterall, why bother with tax reforms if they would have no economic impact? What is the essence of the new tax policies?

Yes, there is a structural change in the tax design, but the improvements are cosmetic because the reality is that the masses, who are the essence of governance, are not getting a better deal.

You sound as if the tax exemption is some kind of new and exceptional policy. Tax exemption already existed in one way or the other, and this administration has not done anything new or spectacular by maintaining it in the new Act. My position remains that it does not go far enough to do what the government thinks it wants it to do.

The bottom line is that given the rhetoric of this administration about how the new laws are super beneficial to the poor, in reality, the economic situation of the poor has not changed as prior economic misadventures by this same government has made whatever benefits that would have accrued from the exemptions, a mirage.

And by the way, what is wrong in increasing the tax exemption range and reducing the tax rates?

We are discussing tax burden, not overall economic wellbeing. The fact that inflation and FX collapse have worsened living conditions does not undo the reality that the new law will reduce and eliminate income tax for those who are low-income earners compared to the old regime.

That improvement may be insufficient but it is not cosmetic. A tax reform cannot undo broader economic failures. Its role is to determine who bears tax pressure and under the new structure, low-income earners bear less.