00:00Tokas Achema runs a gift and decoration business in Nigeria's capital Abuja.
00:06As the new tax reforms took effect from January 1st, she, like many business owners, is watching closely.
00:13I'm a small business owner, so I don't really think it's going to have any impact on my business for now.
00:19But eventually, as time goes, we'll see how it is.
00:24But for now, I'm just testing the waters and seeing how my business flows.
00:29The government says the reforms are designed to broaden the tax base, reduce pressure on workers and small businesses, and stimulate economic growth.
00:39Bottom 98% of workers will see either no PAY tax or lower taxes to be paid.
00:46Small businesses, 97% of them, will be exempted from corporate income tax, VAT, withholding tax.
00:53And large businesses will see a drop in the taxes that they pay.
00:56The whole idea being to try and promote economic growth, inclusivity, as well as shared prosperity for our people.
01:04Under the new system, workers earning $600 a year will no longer pay personal income tax.
01:10Small businesses with turnover below $70,000 are exempt, while larger firms will pay a reduced 25% corporate tax.
01:18An office of the tax ombudsman will handle disputes.
01:22But labor unions say workers were not properly consulted and want the rollout paused.
01:28We called for suspension of the implementation of the new taxes based on three reasons.
01:41First was inadequate consultation.
01:46Second, non-education.
01:50And third, there were legitimacy questions.
01:55Beyond how much people are asked to pay, many Nigerians say the bigger issue is trust.
02:00After years of corruption scandals and poor public services, there is widespread doubt about whether tax money is actually used to improve people's lives.
02:09For me, I don't have a problem with paying taxes. But in a system where I have to provide my own water, alternative electricity, security, and the list goes on, what exactly does the government do for me?
02:25What I feel a lot of Nigerians are skeptical about is that the money won't be embezzled.
02:30Experts say restoring confidence will depend on clear accountability at all levels of government.
02:36Federal government spends tax payers funds. The state government spends tax payers funds. The local government spends tax payers funds.
02:44These three levels of government, each and every one of them, must show accountability and transparency in the use of tax payers funds.
02:54For business owners like Dokka Zachema, the real test of Nigeria's new tax reforms will be whether they deliver fairness, transparency, and trust.
