FG Identifies Primary Beneficiaries Of New Tax Reforms

FG Identifies Primary Beneficiaries Of New Tax Reforms

According to government officials, Nigeria’s poor and low-income earners stand to gain the most from the new tax reforms introduced by President Bola Tinubu.

In a statement on Sunday during an interview on Arise Television, Zacchaeus Adedeji, Executive Chairman of the Nigeria Revenue Service (NRS), emphasized that the reforms were designed to protect vulnerable Nigerians rather than impose additional financial burdens.

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Adedeji clarified that the new tax laws do not create extra taxes, despite public concerns, highlighting that extensive exemptions have been incorporated into the system. “The government is not taxing more. If you examine all the exemptions, over 95 percent of low-income Nigerians are entirely exempted,” he said.

The NRS chairman pointed out that the removal of Value Added Tax (VAT) on essential items such as food and transportation provides significant relief to low-income households. “Eliminating VAT on food items benefits the poor, as nearly 90 percent of their disposable income is spent on food,” Adedeji explained.

He further noted that transportation costs, which consume a large portion of earnings for poor households, are also included in the exemptions. “The same applies to transportation, which the poor rely on heavily,” he added.

Adedeji concluded that when considering the reforms in their entirety, the measures clearly favor Nigeria’s most vulnerable citizens. “Looking at the overall picture and net benefit, the poor emerge as the primary beneficiaries of this tax reform,” he said.