Tax reform has reduced burden on low-income earners — Revenue board

The Joint Revenue Board (JRB) in Nigeria has reported that the country's recent tax reform has successfully reduced the burden on low-income earners and eliminated numerous redundant taxes. Speaking at the 160th meeting of the JRB in Kaduna State, Executive Secretary Olusegun Adesokan emphasized that the reform has not only alleviated the tax burden for low-income earners and micro-scale businesses but has also provided them with relief.

Contrary to concerns that the tax reform would increase taxes, Adesokan clarified that the reform has actually decreased the tax burden on these groups while providing financial assistance to micro-scale businesses. The reform also addressed the misconception that it had increased overall taxes, instead eliminating over 50 collection items previously managed by individual states and local government areas.

Adesokan highlighted that the legislation has streamlined the tax system, reducing the number of sub-heads from 50 to just nine. The JRB's convening of this meeting aimed to assess the progress made in the first year of implementation, identify challenges, and address emerging issues. Kaduna State Governor Uba Sani welcomed the reform as it has expanded opportunities for domestic resource mobilization and strengthened the nation's capacity to finance development.

He encouraged the JRB to identify obstacles hindering revenue collection, address institutional weaknesses between revenue authorities and taxpayers, and explore technological advancements for improved efficiency in revenue administration.