NRS Chairman Lists Items That Will Not Be Taxed in New Tax Laws
- The NRS chairman has said the new tax laws do not impose extra burdens on poor Nigerians
- He stated that food and transportation are exempt from transactional taxes under the new regime
- Low-income workers are expected to see reduced tax deductions in their salaries
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The Chairman of the Nigeria Revenue Service (NRS), Dr Zacch Adedeji, has said the newly introduced tax laws do not impose additional burdens on poor Nigerians, stressing that essential items such as food and transportation remain exempt from taxation.
Adedeji made this clarification during a live television interview on Tuesday, according to remarks monitored in Lagos, as concerns continue to trail the implementation of the new tax regime that took effect on January 1, 2026, Tribune reported.
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New tax laws a relief to new-income earners
He explained that the reforms were designed to promote fairness, simplify tax administration, and modernise Nigeria’s revenue system, noting that no section of the law taxes low-income earners.
According to the NRS chairman, most low-income Nigerians spend the bulk of their income on food and transport, both of which are exempt from transactional taxes under the new framework.
Adedeji said that although President Bola Tinubu signed the Tax Act and the Tax Administration Act into law in June 2025, their implementation was deferred to January 2026 to allow adequate time for preparation and transition, in line with the National Tax Policy.
He added that the six-month transition period was used to develop operational guidelines, train personnel, and deploy systems to ensure a smooth rollout of the reforms.
Addressing public concerns and misinformation, Adedeji urged Nigerians to rely on verified information rather than rumours, noting that some fears expressed before the commencement of the law had not materialised.
On the Development Tax, he clarified that it is not a new levy but a consolidation of existing charges, including education tax and police trust fund contributions, aimed at simplifying compliance for businesses.
Tax gains to support education, security
He said proceeds from the tax would support education, security, and other development priorities.
Adedeji described the reforms as the most comprehensive fiscal overhaul since Nigeria’s independence, explaining that more than 62 previously scattered tax laws have now been harmonised into a single framework.
He added that the reforms also introduce greater use of technology and reduce manual interference in tax administration.
He further noted that low-income workers are expected to benefit directly, as revised tax tables reduce the tax burden on lower income brackets, with workers beginning to see changes in their take-home pay from the end of the month.
Responding to calls for a suspension of the new laws, Adedeji said such a move would be unconstitutional, warning that tax collection must be backed by law to sustain government operations.
He also reassured taxpayers that existing tax clearance certificates remain valid and explained that tax filing requirements have not changed significantly, with most processes now handled digitally.
According to him, the NRS is fully prepared to operate under the new system, adding that the focus of the reforms is to “tax prosperity, not poverty,” while supporting economic growth and job creation.
Source: UGC
Controversy trails new tax laws
Legit.ng earlier reported that the new tax laws have been criticised for various reasons, the recent being reported “errors and gaps” by the global professional services firm KPMG Nigeria.
Meanwhile, the Presidential Fiscal Policy and Tax Reforms Committee responded to KPMG’s assessment of Nigeria’s new tax laws, and dubunked claims of errors and ommissions.
The committee said most of the issues raised by KPMG reflect misunderstandings or policy disagreements rather than actual errors
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
