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The Digest:

The Federal Government confirmed that income earned by commercial sex workers or "runs girls" will be subject to taxation under the new fiscal reforms. Taiwo Oyedele, Chairman of the Presidential Tax Reform Committee, stated that the new laws do not differentiate between income sources, focusing only on whether a service or good was provided for money.

Key Points:

  • Presidential Tax Committee Chairman Taiwo Oyedele stated that commercial sex workers will pay tax.
  • He declared this during an engagement session at the Redeemed Christian Church of God in Lagos.
  • The new laws do not differentiate between legitimate and illegitimate income sources.
  • Any income from rendering a service or providing a good is considered taxable.
  • However, monetary gifts sent to relatives or strangers are not taxable.
  • The policy is based on four new tax acts signed into law by President Tinubu in July.
  • The approach aims to broaden the tax base by capturing all economic activities.
This controversial stance underscores the government's determination to leave no income stream untaxed, sparking debates on morality, legality, and the practicalities of taxing the informal and illicit economy.

Sources: Vanguard News

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