Fact-Check: No Inheritance Tax in Tinubu’s Tax Reform Bill, Says PRNigeria
PRNigeria has debunked claims that inheritance tax has been introduced into President Bola Ahmed Tinubu’s Tax Reform Bill to target Muslims. The assertion, which gained traction on social media platforms, particularly WhatsApp, was based on an article attributed to Prof. Kabiru Isa Dandago, a scholar at Bayero University, Kano.
The controversial claim comes amidst broader concerns from northern Nigeria about the bill’s potential impact on poverty and regional equity. Some critics argue that changes to the distribution of Value-Added Tax (VAT) revenue could disproportionately benefit the South due to its stronger industrial base.
What Is Inheritance Tax?
Inheritance tax is a levy on wealth transferred from a deceased individual to their heirs. In Nigeria, the tax, previously known as the Capital Transfer Tax, was introduced by General Olusegun Obasanjo’s military administration in 1979 but repealed by General Sani Abacha in 1993. It was deemed inconsistent with the teachings of Islam and Christianity, the country’s dominant religions.
The Claim
The viral article, titled “The Return of Inheritance Tax Through the Back Door” and widely circulated among northern Muslims, alleged that the Tax Reform Bill reintroduced inheritance tax, a move critics described as targeting Muslim wealth.
Fact-Check
PRNigeria reviewed the Tax Reform Bill and found no mention of inheritance tax. Section 4 of the bill outlines taxable income but excludes inheritance. Specifically, Section 4(3) addresses income earned by families, not wealth transferred as inheritance.
Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reform, clarified that no inheritance tax provision exists in the bill. He attributed the misinformation to either misinterpretation or deliberate attempts to undermine the reforms. Oyedele emphasized that inheritance is a one-time wealth transfer, distinct from taxable recurring income.
Similarly, the Federal Inland Revenue Service (FIRS) Chairman, Zacch Adedeji, assured Nigerians that the tax reforms would not introduce new taxes or raise existing ones. During an interactive session with the Senate Committee on Finance, Adedeji reaffirmed that the bill focuses on simplifying compliance and boosting revenue without imposing additional tax burdens.
Response from the Author
When contacted by PRNigeria, Prof. Dandago admitted his “suspicion” of a potential reintroduction of inheritance tax through ambiguous language in the bill. However, after learning of Oyedele’s clarifications, he called for clearer wording in the bill to avoid further misinterpretation.
Conclusion
PRNigeria’s investigation confirms that the Tax Reform Bill does not include any provision for inheritance tax. The claim that the bill targets Muslims by reintroducing such a tax is unfounded and misleading. The reforms, as outlined, aim to streamline Nigeria’s tax system without imposing additional levies on citizens.
Read the full PRNigeria Factcheck here: “Is Inheritance Tax a Component of Tinubu’s Tax Reform Bill Targeting Muslims?“