The Nigerian government has announced a plan to charge a 25% tax on people who earn N100 million or more each month. Taiwo Oyedele, who leads the Presidential Fiscal Policy and Tax Reforms Committee, shared this news at the 30th Nigeria Economic Summit in Abuja.
Oyedele explained that the current tax system mostly affects low-income earners, with 90% of taxpayers being people who shouldn’t actually be paying taxes. He also mentioned that 97% of people in the informal sector should not have to pay taxes.
The new tax plan is designed to shift the tax burden from low-income earners to the wealthy. Middle-income earners making N1.5 million or less per month will pay less in personal income tax, while those earning more will see their tax rates increase gradually, eventually reaching 25%.
Oyedele stressed that the government needs to make sure wealthy Nigerians contribute more to the government’s income.
