New tax laws won’t trigger automatic bank deductions – NRS.
The State Administrator for Jigawa, Kano and Katsina, Abdullahi Samaila, gave the assurance at an NRS sensitisation and enlightenment programme […] The Nigeria Revenue Service (NRS) has assured Nigerians that the new tax reforms do not empower authorities to automatically deduct money from personal bank accounts, urging taxpayers to understand the laws and embrace voluntary compliance.
He said the concerns were understandable, noting that taxpayers wanted assurances that their money would remain safe, their businesses would not be unnecessarily burdened, and governments would continue to receive resources to provide essential services.
“Certainly, there are practical reasons for greater confidence in the new tax regime,” he said, adding that tax collection and recovery must follow the applicable laws and procedures.
The NRS official also clarified that the standard VAT rate remained 7.5 per cent, while urging taxpayers to distinguish between money received as loans and actual business income. He explained that a trader who received a loan of N500,000 should not automatically have the amount treated as sales or profit, stressing the importance of keeping proper records and evidence to establish the nature of transactions. Samaila said the tax reforms would be better understood if taxpayers received clear and practical explanations of their obligations, applicable reliefs, record-keeping requirements and channels for seeking assistance. He outlined key areas of the sensitisation programme, including tax provisions affecting companies, individuals and businesses, practical steps towards voluntary compliance, and measures to address challenges confronting taxpayers.
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