The Federal Government has proposed a new tax payment option that allows individuals to pay their taxes in instalments, according to the draft Nigeria Tax Bill 2024 recently submitted to the National Assembly for consideration. Our correspondent obtained a copy of the draft on Sunday.
Under the proposed legislation, taxpayers will have the flexibility to either make a lump sum payment or spread out their tax obligations in instalments, provided that the full amount is paid by the designated filing deadline.
In addition to the instalment payment plan, the bill proposes the creation of a special account managed by the Accountant-General of the Federation to handle tax refunds. This initiative comes in the wake of a comprehensive set of new tax reforms introduced by the government last week to boost revenue collection.
The proposed reforms, outlined in four new bills submitted to the National Assembly, are aimed at streamlining tax collection processes. They include barring agencies such as the Nigerian Customs Service, Nigerian Ports Authority, and 60 other revenue-collecting bodies from participating in revenue collection activities, leading to the creation of the Nigeria Revenue Service. Additionally, the bill calls for the establishment of a tax tribunal and an ombudsman to resolve disputes.
An analysis of the 160-page document highlights that the possibility of tax payment in instalments is part of the government’s strategy to increase compliance and ease the burden on taxpayers. Section 48 of the bill specifies that taxpayers can make monthly payments, with the final instalment due by the filing deadline.
The bill also provides that the total tax due for any accounting period may be paid in equal monthly instalments, ensuring that taxpayers can manage their obligations more flexibly throughout the year.
These reforms are part of the broader Presidential Fiscal Policy and Tax Reforms Committee’s efforts, led by Taiwo Oyedele, to modernize Nigeria’s tax framework and improve revenue efficiency.
