The Chairman of the Ekiti State Internal Revenue Service (EKIRS), Mr Olaniran Olatona has assured Nigerians that the new Federal Tax Law scheduled to take effect in January is designed to further strengthen the economy and will not result in unauthorized deductions from individual bank accounts or cause undue hardship for the citizens
Speaking at a news conference in his office in Ado Ekiti, the EKIRS Chairman said the tax reform is part of President Bola Ahmed Tinubu- led Federal Government’s efforts to modernise the tax system, improve revenue generation and promote fairness in tax administration across the country.
Olatona allayed fears among members of the public that the new tax law would lead to arbitrary deductions from personal bank accounts, stressing that the law does not grant tax authorities the power to withdraw funds from individuals’ accounts without due process.
According to him, the tax reform is designed to broaden the tax base, encourage voluntary compliance, reduce multiple taxes, reduce revenue leakages, while also creating an enabling environment for businesses to thrive and contribute meaningfully to economic development.
The EKIRS Chairman also debunked rumours suggesting that Nigerians without Tax Identification Number (TIN) would be penalized or have their account frozen under the new tax reform. He clarified that the reforms are primarily aimed at regularising and issuing TINs to enhance tax administration and ensure better compliance, rather than to target or punish individuals who do not yet have one.
He further clarified that the new tax reform does not mean an increase in taxes for Nigerians, instead, he said it is designed to protect low-income earners, allowing them to grow and develop economically until they reach a level where they become liable to pay taxes, ensuring a fair and progressing taxation.
The Chairman advised Nigerians to use proper and accurate description when making bank transfer, stressing that doing so would help to avert unnecessary taxation or misinterpretation by tax authorities thereby ensuring smooth processing of transactions under the new tax system.
Cautioning the public against unnecessary increment in prices of goods and services due to the new tax reform, Olatona stated that the reform is expected to help reduce the cost of food and essential items, making life easier and more affordable for citizens across the country.
He urged residents of Ekiti State and Nigerians at large to ignore misinformation surrounding the new tax law and seek clarification from credible sources, assuring that EKIRS would continue to sensitise taxpayers on the provisions and benefits of the reform to ensure smooth implementation
Commending President Bola Ahmed Tnubu’s economic reforms, which he said have helped stabilize the economy and set the country on the path of prosperity, the EKIRS Chairman urged Ekiti people and Nigerians at large to support the initiative and cooperate with tax authorities to ensure the successful implementation of the new tax law and sustained national development.
Meanwhile, the EKIRS has met with Ekiti traditional rulers under the aegis of the Ekiti State Traditional Rulers Council; bank executives and will be meeting artisans, small business owners and proprietors of private schools this week in Ado- Ekiti in a strategic engagement themed: “The New Tax Reform Laws: Deepening Stakeholders’ Understanding for Strategic Alignment and Implementation.”