- The Federal Government has proposed an instalment-based tax payment option for individuals, allowing flexibility in fulfilling tax obligations
- Nigerians can now choose to pay their taxes in one lump sum or spread the payments out, with a final instalment due before the filing date
- TheRadar compiled reactions from the public following the announcement of the bill
The Federal Government’s proposal for an instalment-based tax payment option for individuals has sparked reactions from Nigerians.
This enables individuals to choose to fulfil their tax obligations by making a one-time payment or by spreading the payments across a period, ensuring all payments are completed by the filing due date.
Bill allows instalment payment options for tax obligations
“Subject to section 11 of this Act and without prejudice to any other provision of this Act, every person shall make payment of tax due on or before the due date of filing in one lump sum or instalments, provided that the final instalment shall be paid on or before the due date of filing,” section 48 of the draft bill read.
The proposal was introduced in the Nigeria Tax Bill 2024, which has been submitted to the National Assembly for consideration and approval.
It specified that payments should be made in equal monthly instalments, along with a final instalment, with each monthly payment being one-twelfth of the total amount, or adjusted if the accounting period is less than one year.
Draft bill outlines payment schedule for tax obligations
“Without prejudice to section 16 of this Act, the tax due for any accounting period shall be payable in equal monthly instalments together with a final instalment as provided in subsection four of this section.
“The first monthly payment shall be due and payable not later than the third month of the accounting period and shall be in an amount equal to one-twelfth or where the accounting period is less than a year, in an amount of equal monthly proportions of the amount of tax estimated to be chargeable for such accounting period in accordance with this Act.
“Each of the remainder of monthly payments to be made subsequent to the payment under subsection two of this section shall be due and payable not later than the last day of the month under consideration; and in an amount equal to the amount of tax estimated to be chargeable for such period by reference to the latest returns submitted by the company in accordance with section 16 of this Act less so much as has already been paid for such accounting period divided by the number of the monthly payments remaining to be made in respect of such accounting period,” the draft copy added.
The announcement of the bill has generated various public responses.
Nigerians react to tax payment bill
TheRadar compiled some of the reactions below:
“Aye tax ni ijoba yi wa!! It seems this is the only thing this government knows,” TaiwoTee stated.
“Hanhan, this was and is how he’s been running lagos. Tinubu na tax collector nothing more. He knows nothing about good governance, all he’s ever good at is to win elections fraudulently and buy people with money,” Oluwafemi expressed.
“Since Tinubu became the president, it has been taxes upon taxes. No tangible thing he has done about from making Nigerians pay taxes for nothing. Sad!” Unwanna Assam stated.
“We can’t be paying taxes if the government cannot provide basic amenities,” Nigerian Lens commented.
“Another way to embezzle money,” Omolade Adedoyin added.
“Tax for what exactly? Why should we pay tax to the government when we don't earn from them? All you do is take and give nothing back,” Pisces Stoner reacted.
“With all the tax they have been collecting where is it going. Abi werey ni T-pain ni,” Ayodeji Payne stated.
National Assembly considering raising VAT to 10% by 2025
Meanwhile, TheRadar earlier reported that the National Assembly deliberated on raising the Value-Added Tax from 7.5% to 10% by 2025, with a potential increase to 15% by 2030.
The bill proposed reducing corporate income tax from 30% to 27.5% in 2025 and further to 25% in 2026, with exemptions for small businesses.