Federal Government Introduces Installment-Based Tax Payment

The Federal Government has proposed a new tax payment option that allows individuals to pay their taxes in installments. This provision is included in the Nigeria Tax Bill 2024, which was recently submitted to the National Assembly for review and approval.

With this new option, taxpayers have the flexibility to meet their tax obligations either through a one-time lump sum payment or by spreading the payments over a period of time, provided that all dues are settled before the official filing deadline.

Additionally, the government has suggested setting up a special account for tax refunds, to be managed by the Accountant-General of the Federation. This move is part of a broader initiative that includes a comprehensive set of new tax reforms aimed at significantly increasing revenue collection.

The government recently submitted four bills to the National Assembly, aiming to establish legislative support for the recommendations made by the Presidential Fiscal Policy and Tax Reforms Committee, led by Taiwo Oyedele. These reforms seek to streamline the process of collecting direct taxes and other levies, as well as to improve overall tax efficiency.

As part of these changes, the Nigerian Customs Service, Nigerian Ports Authority, and over 60 other revenue-collecting agencies will no longer be involved in direct revenue collection. Instead, a new body, the Nigeria Revenue Service, will be created to handle these duties.

The proposal also includes the establishment of a tax tribunal and a tax ombudsman to oversee fair practices in the system.