Nigerians were welcomed into 2026 with the introduction of the four tax acts, which could signal a bright future or portend otherwise.
As the year keeps unfolding, some of the fears expressed since last year about the tax acts are being allayed. For example, it was widely rumoured that anyone who doesn’t have a tax identity number (TIN) would have their bank accounts blocked from January 1. But that has not been the case. From the outset, the tax act, from when it was sent as bills to the National Assembly, had faced a series of challenges, disinformation, and misinformation.
At first, a section of the nation was wary that it was another form of burden the government was about to impose on them. Incidentally, the bills scaled through all hurdles and were subsequently signed into law and have become an act.
But honestly, most Nigerians do not know the workability, procedures, and expected results of it all. In fact, Nigerians have had a lot of economic yokes put on their necks, so much so that they are almost like the walking dead and have become oblivious to further suffering.
Therefore, they have resigned to fate as they watch with a pinch of salt as the new tax laws come into effect and care no more. But the government, on its part, should be commended for taking painstaking steps and having patience to enlighten the populace on the benefits of the new tax laws. Several sensitisation meetings and forums have been held of late by the government and stakeholders.
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In fact, the government has taken the right steps to educate various stakeholders on the necessity of the new tax laws. Spearheading the sensitisation is the Internal Revenue Office, and it has so far done its best to assuage any misconceptions about the new tax act.
It was no surprise that President Bola Ahmed Tinubu devoted about half of his New Year message to assuring Nigerians that the new tax laws are for the good of the country and would usher in prosperity. He confidently harped on the positivity of the tax reforms, which he said were long overdue, and what they would yield to the economy.
Raising the hopes of would-be taxpayers, the President painted a bright picture of the huge revenues expected to accrue from the tax act, which, he said, would be used for the provision of infrastructure and social services.
Fortunately, the people have reacted patiently to the tax reforms, even though they have yet to have a full picture of how the tax regime will pan out. Having weathered the many economic programmes of the Federal Government in the recent past and surviving them all, they believe they can cope with whatever the new tax policy throws up at them.
While a lot of concerns, scepticism and even disinformation have swarmed around the programme and how it would be implemented, it, however, took off smoothly on January 1, with not much ado.
One takeaway from all that has been said about the reforms is that the days of multiple taxation are over, and businesses can now heave a sigh. Before now, businesses were subjected to paying multiple taxes and levies that were clearly duplications. All three tiers of government seemingly competed for tax collections from almost the same sources. But the tax reforms have now eliminated multiplicity to the benefit of taxpayers.
Finally, Nigerians can only hope the tax policy will lead to prosperity as Mr President promised and will not turn around to become another pain inflicted in disguise.
