The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has revealed the federal government’s plans to impose a 25 percent tax on wealthy Nigerians earning N100 million monthly.

Speaking at the 30th Nigerian Economic Summit in Abuja on Monday, October 14, 2024, Oyedele stated that 90% of Nigerians paying taxes should not be paying at all.

“People will pay tax once we decide that they have to pay. What we realise is that almost 90% of people who are paying taxes are those who should not have been paying in the first place,” he said.

He mentioned that 97% of individuals in the informal sector should be exempted from paying taxes as they are trying to survive. He also pointed out the government’s intention to tax wealthy Nigerians.

“So that’s where we came up with the data that 97 per cent of the informal sector should be formally exempted from taxes. People do not understand where we are coming from. They’re not the ones to pay taxes. They’re just trying to survive.

Wealthy Nigerians earning N100 million and above monthly will face a 25 percent personal income tax rate if a new tax bill is passed by the National Assembly,” he added.

He stated that there is a need to strike a balance by ensuring that wealthy Nigerians contribute more to the government’s revenue.

“If you earn N100 million a month, we are taking up to 25 percent from the rich people. That’s because we need to balance the books,” he noted.

Oyedele disclosed that for middle-income earners making N1.5 million or less per month, their personal income tax obligations would reduce while those earning higher amounts would see their tax rates increase. Lower-income earners would be fully exempt from personal income tax.

“There have been discussions about new tax policies by the government, especially with moves to multiple taxation for businesses.”

The proposed changes are expected to take effect in January 2025, pending approval from the lawmakers.