The Digest:
The National Orientation Agency (NOA) has moved to calm public fears, explicitly stating that the Federal Government will not make automatic tax deductions from citizens' personal bank accounts. The agency attributed the widespread anxiety to a misinterpretation of the new tax acts, clarifying that only accounts with monthly transactions exceeding N25 million will be required to provide information to authorities, a threshold it states affects a tiny fraction of the population.
Key Points:
- The NOA has denied claims of automatic tax deductions from personal bank accounts.
- It attributed public fear to a misinterpretation of the Nigerian Tax Administration Act.
- Only accounts with individual monthly transactions over N25 million will be monitored.
- The agency revealed that "only about 5% of bank customers have more than half a million" in their accounts.
- The new laws exempt individuals earning below N800,000 annually from income tax.
- Small businesses with a turnover under N100 million will pay 0% profit tax.
- The reforms are described as "pro-poor" and "business-friendly."
Sources: The Cable
