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According to Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, if the new tax laws are not put into effect by January 1, 2026, a significant portion of workers will continue to be overtaxed.
In the wake of new disputes that have followed the expected implementation of the new tax rules, the presidential adviser provided the explanation.
Prominent stakeholders, such as former vice president Atiku Abubakar and former Labour Party presidential candidate Peter Obi, have demanded that the tax legislation’ scheduled implementation be halted until all issues are resolved.
However, Oyedele, who spoke on Monday on Channels Television’s The Morning Brief, explained that if the new tax laws are not implemented by January 1, 2026, the bottom 98 per cent of workers will suffer the brunt as they will remain overtaxed.
He added that workers will suffer multiple taxations, businesses will miss out on tax exemptions, and small unprofitable businesses will continue to pay unnecessary taxes, while the VAT on food items will remain, and continue to push up the prices of basic household items.
“The implication of not implementing the new tax laws by January 1, 2026, is that the bottom 98 per cent of workers remain overtaxed.
“Businesses will miss out on exemptions and will continue to pay multiple taxes, creating large burdens.
“Minimum taxes continue to apply on low and small unprofitable businesses, hidden VAT continues to make prices of basic consumptions like food, healthcare, and education continue to go up,” he said.
Instead of demanding the cancellation of the new tax laws, Oyedele said the implementation should be allowed to go ahead, while areas of concern would be addressed.
He said, “So, we need to be clear about what we are asking for.
“That is why I keep saying that even if it is established that there have been substantial alterations to what the National Assembly passed, my view will be to identify those provisions, and those provisions mean that, of course, they are not part of the law.
“So, you then go ahead to implement the law as passed by the NASS, while you address the issues as to how they got in there in the first place, and what to do.”
Oyedele noted that there were aspects of the version already passed by the National Assembly that needed to be amended and his committee has already approached President Bola Tinubu to request a start of the amendment process.
“I will say to you that regarding the one passed by NASS, even my committee and I have noted areas where we need to go back through Mr President to request amendments to those laws, because there were issues with referencing and definition,” Oyedele said.
It was reported that the new tax laws include the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act, all operating under a single authority, the Nigeria Revenue Service.
According to the Federal Government, the reforms are designed to simplify tax compliance, expand the tax base, eliminate overlapping taxes, and modernise revenue collection across federal, state, and local governments.
