Breaking News: Nigeria Proposes Tax Payment in Instalments, Boosts Revenue Collection
The Nigerian government has introduced a new tax payment option, allowing individuals to pay their taxes in instalments, as part of the Nigeria Tax Bill 2024, which has been submitted to the National Assembly for consideration and approval.
According to a copy of the draft obtained by our correspondent, the option will give individuals the flexibility to pay their taxes in lump sums or spread it out over time and settle before the designated due date for filing.
This move is part of the government’s efforts to increase revenue collection and enhance the efficiency of direct tax collection. The bill proposes the creation of a special account by the Accountant-General of the Federation for tax refunds and aims to bar the Nigerian Customs Service, Nigerian Ports Authority, and 60 other revenue collection agencies from participating in revenue collection activities, instead leading to the creation of the Nigeria Revenue Service.
The reforms also propose the creation of a tax tribunal and ombudsman, as well as the distribution of value-added tax revenue. It is planned to allocate 10 per cent of the revenue to the Federal Government, 55 per cent to the State Governments and the Federal Capital Territory, and 35 per cent to the Local Governments. Additionally, 60 per cent of the amount standing to the credit of states and local governments will be distributed among them based on derivation.
The provision for tax payment in instalments will significantly benefit individuals and small businesses, allowing them to manage their financial obligations more effectively. It is a step forward in simplifying the tax system and increasing transparency, making it easier for citizens to meet their tax obligations.
The proposed reforms are a crucial step towards boosting revenue collection and promoting economic growth in Nigeria. With the expected increase in revenue, the government can channel the funds towards key development projects, infrastructure, and social services, ultimately improving the standard of living for millions of Nigerians.
As the proposal makes its way through the legislative process, businesses and individuals will be watching with keen interest, anticipating the potential impact on their financial obligations and the economy as a whole.
For now, the plan is to make tax payment more flexible and manageable, giving individuals and businesses a chance to breathe a sigh of relief. With the tax payment in instalments option, Nigeria is poised to revolutionize its tax system, boosting revenue collection and stimulating economic growth.
