The Federal Government has said low-income Nigerians stand to benefit the most from the new tax reforms introduced by President Bola Ahmed Tinubu.
The Chairman of the Nigeria Revenue Service (NRS), Mr. Zacchaeus Adedeji, made this known during an interview on ARISE Television on Sunday, where he explained that the reforms were designed to ease the financial burden on the poor rather than impose additional taxes.
Adedeji dismissed claims that the government was increasing taxation, noting that extensive exemptions built into the new tax regime have shielded a vast majority of low-income earners from any additional burden.
According to him, over 95 per cent of Nigerians classified as poor are completely exempted from the new tax measures, stressing that the reforms deliberately target fairness and inclusiveness.
He explained that the removal of Value Added Tax (VAT) on essential food items was a major relief for vulnerable citizens, as food accounts for about 90 per cent of their disposable income.
The NRS chairman added that transportation costs, another major expense for low-income households, have also been considered under the reforms, further reducing the financial pressure on the poor.
“When you look at the overall structure and net impact of these reforms, it is clear that low-income Nigerians are the biggest beneficiaries,” Adedeji said.
