BY OLUWARAISE-ME-UP
Tax experts in Ekiti State have dispelled public fears surrounding the new tax law, assuring residents that the policy will neither impoverish Nigerians nor allow indiscriminate deductions from individuals’ bank accounts.
The clarification was given on Wednesday at a tax enlightenment workshop organised by Ayodele and Ayoade Professional Services in collaboration with the Institute of Chartered Accountants of Nigeria (ICAN), Ado-Ekiti District, Chartered Institute of Taxation of Nigeria (CITN), Ekiti State Internal Revenue Service (EKIRS), and the Ekiti Patriotic Front (EPF). The workshop was held at AB Hotel, Olora, Ado-Ekiti.
Speaking at the event, tax professionals including the Executive Chairman of EKIRS, Mr. Olaniran Olatona; a representative of the Federal Inland Revenue Service (FIRS), Mr. Patrick Adeseye;
Prof Olutoye Oladayo and Associate Professor Ayodele, among others, educated participants on the provisions and benefits of the new tax law.
The experts attributed the widespread anxiety over the law to misinformation and misconceptions allegedly being spread by uninformed individuals to discredit the reform. They emphasized that the new tax law was designed to correct long-standing anomalies in Nigeria’s tax system and promote fairness.
The organiser of the workshop, Prince Adebolu, a retired Director of the Federal Inland Revenue Service, said President Bola Tinubu introduced the tax reform with the best interest of Nigerians at heart. He explained that low-income earners stand to benefit the most, stressing that individuals earning below ₦800,000 annually are exempt from paying tax, while the burden is shifted towards high-income earners.
According to Prince Adebolu, the misconceptions surrounding the law informed his decision to organise the enlightenment programme.
“As a tax expert, I cannot remain silent while my people remain ignorant of a law that is meant to benefit them. My motivation has always been service to humanity. If sincerely complied with, this law will correct long-standing abnormalities in our tax system. It is a progressive law, contrary to the false narratives being circulated on social media,” he said.
In his submission, the Executive Chairman of EKIRS, Mr. Olaniran Olatona, who was represented by Mr. Joseph Olorunfemi, urged residents to ensure proper filing of tax returns and accurate documentation of financial transactions. He reiterated that the new law does not impose additional tax burdens but rather promotes transparency and accountability.
He advised taxpayers to: File accurate tax returns as individuals or corporate entities;
Maintain proper documentation of all transactions; and
Ensure receipts are obtained for all tax payments.
Also speaking, Mr. Patrick Adeseye of FIRS clarified that the Tax Identification Number (TIN) is not a new concept, noting that it has been in existence since 2005. He assured participants that funds cannot be withdrawn from bank accounts without the owner’s authorization, adding that the tax system operates on self-assessment.
He explained that companies are required by law to render returns to the government, noting that where discrepancies exist, there are provisions for reconciliation. He further stated that taxpayers earning below ₦800,000 annually are exempted from minimum tax and added that reliefs are available on rent and health insurance.
Participants were urged to familiarise themselves with the new tax law and seek clarification on grey areas to avoid misinformation.
Prince Adebolu stressed that public awareness is critical to ensuring both government and citizens benefit from the tax reform. He warned that failure by professionals to educate the masses could portray government negatively and hinder national development.
While appreciating EKIRS for its support, he pledged continued commitment to public enlightenment and called on residents to embrace the new tax regime from January, describing it as a policy capable of transforming Nigeria’s economy and exposing tax evasion.
Traditional rulers, including The Onisan, HRM Oba Gabriel Ayodele Adejuwon, and Eyesorun Abosede Adejugbe,the wife of Ewi of Ado Ekiti , commended the initiative and urged residents to comply with the new tax law for the collective benefit of the society.
In her remarks, Associate Professor Ayodele called on EKIRS to intensify grassroots enlightenment by extending awareness campaigns to marketplaces and trading centres.
The workshop attracted members of the Ewi-in-Council, ICAN members, leaders of Hausa, Igbo, and Yoruba communities, including concerned individuals. Some participants expressed appreciation for the knowledge gained and pledged their readiness to comply with the new tax law as all questions asked were succinctly provided with answers.