FG Reveals Why New Tax Must Take Effect from January

The Federal Government has explained that implementing the new tax laws by January 1, 2026, is crucial to alleviate the tax burden on 98% of workers.

Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, while speaking on Channels Television’s The Morning Brief, warned that delaying implementation would lead to continued multiple taxations, affecting low-income earners and businesses.

“The implication of not implementing the new tax laws by January 1, 2026, is that the bottom 98 per cent of workers remain overtaxed,” Oyedele said.

He added that “minimum taxes continue to apply on low and small unprofitable businesses, hidden VAT continues to make prices of basic consumptions like food, healthcare, and education continue to go up.”

Oyedele emphasized that critics should identify specific concerns rather than calling for cancellation. “We need to be clear about what we are asking for,” he said, suggesting amendments can address any discrepancies.