00:00This is the biggest tax overhaul in decades. The goal is to raise revenue beyond oil and
00:07make taxes fairer. Low earners pay nothing. High earners pay more. If this works, it has
00:15the potential to be a real game changer in Nigeria's economy. But if it flops, it will
00:21be just another failed project. This has sparked mixed reactions.
00:26All the tax they have been collecting, what are they really using it for? I think it's
00:32okay. Let's just give it a try for the first six months before we complain. It is going
00:37to affect the poor masses because now the high income earners are going to increase the rate
00:43of their goods and products, making it a little bit impossible for the poor masses to afford
00:49what they usually afford on a normal day. The government says all taxes will be harmonized
00:55under the new law. Officials argue the system is designed to make taxation fairer.
01:01In Nigeria before now, where there is proliferation of all forms of taxes. So this reform is a
01:10long overdue reform and it should help us a great deal to reposition our fiscal policy,
01:17the fiscal environment better than what we used to have.
01:21VAT stays at 7.5%. Not everything is taxed anymore. Everyday essentials like staple foods, medicines and
01:30baby items are now zero rated, meaning no VAT is charged on them.
01:36So I also just bought some medication. With the new tax reform, medication would be zero VAT, no value-added
01:43tax.
01:44Normally this medication would have had a 7.5% tax on it. Small businesses earning up to 100 million
01:52a year,
01:52about 60,000 euros, pay no corporate tax. Bigger firms still pay 30% on profits, plus a new 4
02:01% development
02:02levy. However, some industries say they are already overburdened. The owner of Airpeace wants that aviation
02:10faces extra costs under these rules. We support the tax laws, but as it concerns aviation, there are things
02:17that needs to be amended. That's what we are saying. If I say my ticket is 500,000 Naira and
02:25I charge 7.5%,
02:27the person is not paying 7.5% higher.
02:32The new tax laws have been in place since the 1st of January, 2026. Nigerians are expected to comply.
02:39But many still don't understand the rules. Analysts say collecting these taxes won't be easy.
02:47And uneven enforcement could cause confusion. For now, people are waiting to see if the promises
02:54These rises bring real relief.
02:57You
02:58You
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