The Presidential Committee on Fiscal Policy and Tax Reforms has proposed a 25 per cent tax rate on individuals earning N100 million and above monthly in the country.
Chairman of the Committee, Taiwo Oyedele, stated this at a breakout session during the Nigeria Economic Summit organised by the NESG.
Oyedele said the 25 per cent tax on the rich is needed to strike a balance that eases the tax burden on low-income earners while ensuring that higher-income individuals contribute more to government revenue.
According to him, the federal government plans paying back to businesses 100 per cent of the Value Added Tax (VAT) paid by them on asset and services.
He noted that businesses paying VAT on assets such as cars, laptops etc increases their overall cost which contributes to inflation.
“If you earn N100 million a month, we’re taking up to 25 percent from the rich people. That’s because we need to balance the books. Today, whatever VAT you (businesses) pay on assets—whether you’re building a factory, buying a laptop, or vehicles—you bear it. This increases your cost, and therefore, your pricing will go up. Once our reforms are implemented, you get the credit back 100 per cent on services and assets,” Oyedele stated.
