The Federal Government has dismissed public fears surrounding the newly introduced tax reforms, assured Nigerians that bank transfer narrations will not be monitored and personal accounts will not be automatically debited for tax purposes.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, gave the clarification during an end-of-year programme on Channels Television, amid growing concerns that the reforms could lead to intrusive tracking of citizens’ bank transactions.
Oyedele said the government neither intended nor possessed the capacity to monitor individual bank transfers for taxation, stressing that the new tax framework is based on self-assessment and voluntary compliance.
He explained that no tax authority anywhere in the world has the ability to track every financial transaction, adding that whatever narration accompanies a bank transfer regardless of the amount has no impact on tax liability.
According to him, taxpayers are only required to declare their income at the end of the year, clearly separating taxable earnings from non-taxable receipts.
Oyedele noted that individuals or businesses exempt from tax would simply indicate their status during filing and would not be required to make any payment.
He attributed the backlash against the reforms to misinformation, alleging that some high-income earners are deliberately spreading false claims to evade their tax obligations.
The committee chairman also said the reforms would significantly benefit small business owners by removing multiple and overlapping levies currently imposed on sole proprietors.
He added that the overall aim of the new tax regime is to protect low-income earners, simplify compliance for businesses, and promote fairness within the tax system.
