Why implementing new tax laws by January 1 is necessary – Oyedele

Chairman of the Presidential Fiscal Policy and Tax ReformsCommittee, Taiwo Oyedele, on Monday, enumerated consequences Nigerians shouldexpect if the new tax laws are not implemented by January 1, 2026. His explanation comes on the heels of clamours by formerVice President Atiku Abubakar, the 2023 presidential candidate of the LabourParty, Peter Obi, and several civil society organisations, for the suspensionof the implementation of the laws. Oyedele, while speaking on Channels Television’s The MorningBrief, noted that 98 per cent of workers will continue to suffer multipletaxations if the laws are not implemented. “The implication of not implementing the new tax laws byJanuary 1, 2026, is that the bottom 98 per cent of workers remain overtaxed. “Businesses will miss out on exemptions and will continue topay multiple taxes, creating large burdens. “Minimum taxes continue to apply on low and smallunprofitable businesses, hidden VAT continues to make prices of basicconsumptions like food, healthcare, and education continue to go up,” he said. He suggested that instead of asking for the cancellation oftax implementation, areas of concern should be addressed. “So, we need to be clear about what we are asking for. “That is why I keep saying that even if it is establishedthat there have been substantial alterations to what the National Assemblypassed, my view will be to identify those provisions, and those provisions meanthat, of course, they are not part of the law. “So, you then go ahead to implement the law as passed by theNASS, while you address the issues as to how they got in there in the firstplace, and what to do.” Oyedele noted that there were aspects of the version alreadypassed by the National Assembly that needed to be amended. He also weighed in on the controversy trailing the new taxlaws. A member of the House of Representatives, Abdulsamad Dasuki,recently raised concerns about what he described as discrepancies between taxlaws passed by the National Assembly and the versions subsequently gazetted andmade available to the public. Dasuku argued that his legislative rights had been breachedbecause the content of the gazetted tax laws did not reflect what lawmakersdebated and approved on the floor of the House. Oyedele stated that he reached out to the House ofRepresentatives Committee regarding a particular Section 41 (8), which states,“You have to pay a deposit of 20 per cent.” He noted that the response given by the committee was thatits members had not met on the issue. President Bola Tinubu signed the four tax reform bills intolaw, marking what the government has described as the most significant overhaulof the country’s tax system in decades. The tax reform laws, which faced stiff opposition fromfederal lawmakers from the northern part of the country before their passage,are scheduled to take effect on January 1, 2026. The laws include the Nigeria Tax Act, the Nigeria TaxAdministration Act, the Nigeria Revenue Service (Establishment) Act, and theJoint Revenue Board (Establishment) Act, all operating under a singleauthority, the Nigeria Revenue Service.

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