₦airaland Forum

Image123:
Still a huge improvement on the previous

Shame on all the animals who think taxation is a path to greatness.

Every thing is targeted at stealing public funds, we know him from time.
Yesterday it was PricewaterhouseCoopers forecasting gloomy days ahead.
Now it's KPMG picking holes in the notorious Tax Law.
These are reputable Tax and Financial Advisors.
Everything about Tinubu is Oluwole!

CodeTemplarr:
Taxing existence and not prosperity is what has brought Iran to her knees.

No, Iran is suffering a loss of forex due to substantially low oil prices...it needs oil at 125 DOLLARS per barrel, for it to make sense for them financially

Also, Iranian leaders subsidise petrol and a whole host of things, food included.

The problem is , low forex has forced a devaluation of the currency, which has led to an increase in the price of goods. Hence the protests.

The FG are taxing transfer of funds not minding the purpose. If an association of individuals decide to transfer donation for a noble cause and that amount exceeds 10,000.00 boooom N50 is gone from sender n reciever. You transfer your tithe also, boooom another N50.
Urgent 10k nko? Another one. You pay for groceries with transfer nko? Same thing. Ransom to kidnappers nko same thing. Imagine Adamu/Ada/Ade has been kidnapped and as the tradition has become, his people are transferring above N10k to a contribution holding account, boooom N50 each. They are taxing misery and existence like prosperity. Taxing even injustice.

So, the alternative then is that we triple our borrowing. I didn;t know you supported the renewed hope agenda on borrowing

The way you think sometimes, can ten million people pay income tax for 230 million people? Also, that oil, we need at least 50 million bpd or more before it makes sense.

That is why I say that we should develop an industrial economy...and fight corruption. You want consumption subsides that would be paid for by borrowing, since we are too poor to pay taxes.

And you call me demonic.

Funding religion is another

1.AYup, a lot of European countries fund religion. Or where do you think the church of england gets most of its money from?

2.You must be a muslim...since Iran, a muslim country pays for subsides. Now I know why you don't like me!


Remain blocked until you are ready to have a calm and mature conversation.

Image123:
That's not tax but some unnecessary stamp duty that has always existed.

It is still tax, tax is not online income tax, Nigerians already pay a lot of tax to govt for decades.

Taiwo didn't work with PWC his former employer on this?

Were they not involved when it's been drafted?

Fuckyoumod:
Shame on all the animals who think taxation is a path to greatness.

For the record, I did not vote for tinubu, gej, atiku, buhari or obasanjo.

RIght now, tax income comes from 10 million people, some companies, and it forms 20% of our budgetable income...that also includes VAT.

That is not enough for 230 million people.

Also, oil prices have been way below our budget benchmark and even the fiscal breakeven for this country.

ENd result is we got to borrow. Taz is not meant to get us prosperous...it is to reduce the borrowing we have to do. Anyone who thinks tax is a way to prosperity is lying to you.

Image123:
Kindly explain how the tax is oppressive for high income earners?

Take for instance, I decide to birth one child in order to consolidate my income, then another person decides to birth 8 kids without proper income, then I'm taxed heavily because of that person.
That is madness. If I'm a high income earner, I maybe living in an apartment of 10m yearly or more, so 500k is insignificant to my rent relief at all. While 500k may mean a lot for low income earner.
So U need to balance it and ensure those who create jobs actually have reason to create job especially in such a country like Nigeria with brutal environments..
I started two businesses in 2024, a restaurant and a tech training center. One thing that made me to close them all was electricity. I was running fuel generator for restaurant daily, same for tech training center, then for my home. Gush, the fuel was too much. I considered solar, the amount to get solar that can power tech training center was too much, same for restaurant. Omo, I closed them.
So, U see, encourage people to create job.
For me, I would say Nigeria doesn't need this type of tax at all. Nigeria needs job. Find ways to create the environment for people to create jobs which increases their purchasing power, then increase VAT to 10 percent.
Nigeria is extremely tough.
Take for instance, there are guys making mad money via content creation, arbitrary blogging. Instead of imposing heavy tax on them since most of the tax generated will be wasted by govt officers for sure. Why not tax them extremely less, but partner with them and send NYSC members to them to be trained so they can replicate same.
If U have 100 nigeians earning 100k dollars monthly,.U have increased purchasing power and U can generate revenue from VAt because they will spend on luxury and pleasure.
The sad thing is that Nigeria thinks that they can copy European model. What worked for Europe can't work for Africa.
I will give U another example. Africans, Nigerians in particular are very communal in nature.
A person who earns 20m yearly is not actually a high income earner. The person will pay about 4m to govt as income tax,, right? But the person surely will have a lot of dependencies such as parents, siblings, friends, etc who constantly need support due to the reality of our country. Europeans aren't communal that is why their parents are kept in elderly homes.
If U earn 20m yearly and govt takes 4m from u as tax and U still will attend to Ur aging parents since no singular support from govt on that, U will battle with electricity issues, U have to deal with bad roads, U need to deal with private hospitals since public are in terrible shape, U also need to deal with private schools since public ones are terrible. By the time U are done with these expenses, U are already completely broke. Tax luxury and remove income tax.
It is madness that I will go to a mall, buy stuff, pay VAT on it, then, still pay stamp duty when I transfer their money to the money from an income that has been taxed already as income tax. Guy, mad ooooo

It should be properly done before implementation

Image123:
Kindly explain how the tax is oppressive for high income earners?

Simply because high income earners are being made to pay much higher taxes, without enjoying any commensurate benefits from the taxes or govt.

Esthered:
Taiwo didn't work with PWC his former employer on this?

Taiwo Oyedele probably got excited with the opportunity of his appointment and rushed with the so called reforms without carrying along the Big 4 (Deloitte, KPMG, PWC, EY) and others.
This probably explains why there was no broad based support for the new tax laws, and he had to rely on the govt. to push the legislators to compromise before the laws were passed. Even now, we know the version that was gazetted is different from what was passed by NASS

PWC didnt find any flaws na. KPMG is just jealous that they choose someone from PWC to manage tax laws. If their man was chosen they d be singing a different melody.

It is better they trash this thing well once and for all o

All these consultants are now using AI

By the way, Nigerian media should stop using "bother" instead of "border".

For example, the "law borders on impunity" instead of "the law bothers on impunity"

Taxing the poor

GODISGREAT123:
Stamp duty is a form of tax

It's not a new tax law but has existed long before and even collected from both sender and receiver.

Good. No law is perfect. Start first and then do corrections. If you are waiting for a perfect law you will never start anything.

I really don’t understand why the relief on interest on mortgages is restricted to owner-occupied housing alone. Since the government cannot provide adequate housing to all, I don’t think private investors into the sector who get mortgages at ridiculously high rates (about 30%) should be so demotivated by such exclusion. Most times, the annual interest rates come higher than the rental income. A lot of economies would rather do everything to stimulate growth and encourage investment in sectors the government is unable to adequately cater for.

Princedapace:
It is still tax, tax is not online income tax, Nigerians already pay a lot of tax to govt for decades.

i meant to say that it's not a new tax reform but had existed before.

nwirinedu:
PWC didnt find any flaws na. KPMG is just jealous that they choose someone from PWC to manage tax laws. If their man was chosen they d be singing a different melody.

Let them sing as long as they point out issues that affect us all. If they don't sing, a section will claim they've been compromised.

Druss:
You don't know the rates and you are making the above statement. Nah...

Also paying more can mean oppressive especially when the return on tax paid is very poor.

Actually, i know the rates, you don't seem to. Old rate was 24% and new rate is 25% if you earn above 50million. 50million is 23%. Old rate was 24% from above 3.2million.
You said "They pay a lot more under the new one than the old one." i was struggling to figure the lot more or oppressive rate you speak of. Kindly assist.

mikeapollo:
Simply because high income earners are being made to pay much higher taxes, without enjoying any commensurate benefits from the taxes or govt.

What rate do you suggest in comparison with tenable global tax standards.

Druss:
They pay a lot more under the new one than the old one.

After all allowable deductions have been done, if the amount one has earned or profited during the tax year is greater than ~NGN 17m one will be paying more tax than the old tax admin

Princedapace:
Take for instance, I decide to birth one child in order to consolidate my income, then another person decides to birth 8 kids without proper income, then I'm taxed heavily because of that person.
That is madness. If I'm a high income earner, I maybe living in an apartment of 10m yearly or more, so 500k is insignificant to my rent relief at all. While 500k may mean a lot for low income earner.
So U need to balance it and ensure those who create jobs actually have reason to create job especially in such a country like Nigeria with brutal environments..
I started two businesses in 2024, a restaurant and a tech training center. One thing that made me to close them all was electricity. I was running fuel generator for restaurant daily, same for tech training center, then for my home. Gush, the fuel was too much. I considered solar, the amount to get solar that can power tech training center was too much, same for restaurant. Omo, I closed them.
So, U see, encourage people to create job.
For me, I would say Nigeria doesn't need this type of tax at all. Nigeria needs job. Find ways to create the environment for people to create jobs which increases their purchasing power, then increase VAT to 10 percent.
Nigeria is extremely tough.
Take for instance, there are guys making mad money via content creation, arbitrary blogging. Instead of imposing heavy tax on them since most of the tax generated will be wasted by govt officers for sure. Why not tax them extremely less, but partner with them and send NYSC members to them to be trained so they can replicate same.
If U have 100 nigeians earning 100k dollars monthly,.U have increased purchasing power and U can generate revenue from VAt because they will spend on luxury and pleasure.
The sad thing is that Nigeria thinks that they can copy European model. What worked for Europe can't work for Africa.
I will give U another example. Africans, Nigerians in particular are very communal in nature.
A person who earns 20m yearly is not actually a high income earner. The person will pay about 4m to govt as income tax,, right? But the person surely will have a lot of dependencies such as parents, siblings, friends, etc who constantly need support due to the reality of our country. Europeans aren't communal that is why their parents are kept in elderly homes.
If U earn 20m yearly and govt takes 4m from u as tax and U still will attend to Ur aging parents since no singular support from govt on that, U will battle with electricity issues, U have to deal with bad roads, U need to deal with private hospitals since public are in terrible shape, U also need to deal with private schools since public ones are terrible. By the time U are done with these expenses, U are already completely broke. Tax luxury and remove income tax.
It is madness that I will go to a mall, buy stuff, pay VAT on it, then, still pay stamp duty when I transfer their money to the money from an income that has been taxed already as income tax. Guy, mad ooooo

95% of what you have said is not new. We've been experiencing the same scenario for years, it's not due to the new tax reform. What i am asking is a comparison of the old and the new, and how the new is so oppressive when compared to the old tax model.

Happy New Year!!! 🎊🎊🎊

Looking at the possibilities this new development brings, we have been building a solution to help Nigerians NAVIGATE TAXES, STAY COMPLIANT and AVOID PENALTIES

Take a look at this and let me know what you think:
https://www.thetaxprof.com

We are also open to collaborating with tax consultants and enthusiasts to ensure we build this right!

They couldn’t even hire a audit firm to review their law after the billions Tinubu gave Taiwo Oyedele.

Since when did KPMG become Politicians?

If they think there is any problem why
are they not going through the Ministry of Finance?

Image123:
That's not tax but some unnecessary stamp duty that has always existed.

jmoore:
The 'description gang' again. Nobody can touch or tax money in your account.

You guys should stop using this description stuff to keep Nigerians busy.

That's untrue.

Stamp duty is a tax the government charges on certain legal documents, transactions, or agreements. It’s usually applied to things like property transfers, contracts, share certificates, leases, and some financial transactions. The government charges it to legally validate the document or transaction.

That's a typical example of what government collects that is a tax. For example, if you send fifteen thousand naira, the bank keeps fifty naira and your friend gets fourteen thousand nine hundred fifty naira. You only pay this if you send more than ten thousand naira, and the money goes to the government.

The Stamp Duties Act originally dated back to colonial law, and the Finance Act 2019 expanded the Stamp Duties Act to explicitly include bank deposits and transfers, giving a clear statutory basis for charging stamp duty on electronic transactions like bank transfers.
Before the 2019 Finance Act, banks were already deducting a N50 charge on electronic transfers above a certain threshold as an Electronic Money Transfer Levy (EMTL) going back to around 2016, after a Central Bank of Nigeria circular directed banks to implement such levies.

That practice was controversial, and in 2020 a Federal High Court ruled that some of these deductions were being collected without explicit legal backing at the time. The Finance Act 2019 and then the Finance Act 2020 gave the government a clear legal foundation to charge this levy via the Stamp Duties Act amendments, meaning that from March 2020 onward, banks had explicit statutory authority to collect a stamp duty/EMTL on electronic deposits and transfers above ₦10,000.


Under the current regime, banks collect a flat fee (commonly ₦50) on qualifying electronic transfers or deposits, which they remit to the Federal Inland Revenue Service (FIRS) as stamp duty revenue.

Stamp Duty Tax: How Electronic Stamping Will Function For Business Transactions - Director, FIRS

https://www.youtube.com/watch?v=fcGCRVCcbkQ


Image123, there is nothing like unnecessary stamp duty. It is money that goes to the government. You need to correct yourself. Once the money goes to the government as a form of revenue and it is taken from you, you pay the tax.

Looking at the possibilities of this new development brings, we have been building a solution to help Nigerians NAVIGATE TAXES, STAY COMPLIANT and AVOID PENALTIES

Take a look at this and let me know what you think:

visit www dot the tax prof dot com
We are also open to collaborating with tax consultants and enthusiasts to ensure we build this right!

Image123:
Actually, i know the rates, you don't seem to. Old rate was 24% and new rate is 25% if you earn above 50million. 50million is 23%. Old rate was 24% from above 3.2million.
You said "They pay a lot more under the new one than the old one." i was struggling to figure the lot more or oppressive rate you speak of. Kindly assist.

I will ignore the arrogance I am detecting in your post for the sake of having a civilised discussion.

Firstly you are the person who asked what the rates were

Secondly what ball park figure of salaries are you looking at? You think the persons I am referring to are earning 50m per year? I can confirm that people within a certain range are coughing up more monies under the new tax. The government has admitted this.

Thirdly the return on tax for Nigerians who pay their taxes is poor.

SixSeven:
That's untrue.

Stamp duty is a tax the government charges on certain legal documents, transactions, or agreements. It’s usually applied to things like property transfers, contracts, share certificates, leases, and some financial transactions. The government charges it to legally validate the document or transaction.

That's a typical example of what government collects that is a tax. For example, if you send fifteen thousand naira, the bank keeps fifty naira and your friend gets fourteen thousand nine hundred fifty naira. You only pay this if you send more than ten thousand naira, and the money goes to the government.

The Stamp Duties Act originally dated back to colonial law, and the Finance Act 2019 expanded the Stamp Duties Act to explicitly include bank deposits and transfers, giving a clear statutory basis for charging stamp duty on electronic transactions like bank transfers.
Before the 2019 Finance Act, banks were already deducting a N50 charge on electronic transfers above a certain threshold as an Electronic Money Transfer Levy (EMTL) going back to around 2016, after a Central Bank of Nigeria circular directed banks to implement such levies.

That practice was controversial, and in 2020 a Federal High Court ruled that some of these deductions were being collected without explicit legal backing at the time. The Finance Act 2019 and then the Finance Act 2020 gave the government a clear legal foundation to charge this levy via the Stamp Duties Act amendments, meaning that from March 2020 onward, banks had explicit statutory authority to collect a stamp duty/EMTL on electronic deposits and transfers above ₦10,000.


Under the current regime, banks collect a flat fee (commonly ₦50) on qualifying electronic transfers or deposits, which they remit to the Federal Inland Revenue Service (FIRS) as stamp duty revenue.

Stamp Duty Tax: How Electronic Stamping Will Function For Business Transactions - Director, FIRS

https://www.youtube.com/watch?v=fcGCRVCcbkQ


Image123, there is nothing like unnecessary stamp duty. It is money that goes to the government. You need to correct yourself. Once the money goes to the government as a form of revenue and it is taken from you, you pay the tax.

It is very unnecessary or too high. The video says it's voluntary, there's nothing voluntary about stamp duty. It automatically comes on transactions.

Druss:
I will ignore the arrogance I am detecting in your post for the sake of having a civilised discussion.

Firstly you are the person who asked what the rates were

Secondly what ball park figure of salaries are you looking at? You think the persons I am referring to are earning 50m per year? I can confirm that people within a certain range are coughing up more monies under the new tax. The government has admitted this.

Thirdly the return on tax for Nigerians who pay their taxes is poor.

Personal income tax rate is 25% for anyone earning above 50million. It used to be 24% for anyone above 3.2million. Let me know the rates you refer to that's more. Thanks.