Government Introduces Streamlined Tax Payment Solutions For Improved Efficiency

Government Introduces Streamlined Tax Payment Solutions For Improved EfficiencyPresident Bola Tinubu’s administration has proposed a new initiative allowing individuals to pay their taxes in instalments. This plan is part of the recently submitted Nigeria Tax Bill 2024, which is currently under review by the National Assembly.

According to the bill, taxpayers will have the flexibility to choose between making a one-time payment or spreading their tax obligations over a specified period, ensuring all payments are completed before the filing deadline. The proposal also includes establishing a dedicated account managed by the Accountant-General of the Federation specifically for processing tax refunds.

In addition to this, the government introduced a series of tax reforms aimed at improving revenue collection. Four new bills presented to the National Assembly seek to provide legislative frameworks for recommendations made by the Presidential Fiscal Policy and Tax Reforms Committee, led by Taiwo Oyedele. These reforms aim to enhance the efficiency of collecting direct taxes and other government-imposed levies.

The proposed changes will restrict the Nigerian Customs Service, Nigerian Ports Authority, and over 60 other revenue agencies from participating in revenue collection activities, leading to the creation of a new entity, the Nigeria Revenue Service. The reforms also include plans to establish a tax tribunal and an ombudsman to oversee tax-related issues.

A detailed analysis of the 160-page draft bill highlights the government’s intention to facilitate easier tax payments, as indicated in Section 48, which states that individuals must fulfill their tax obligations by the due date, either in a lump sum or through instalments  .