Tax Reform: Workers report lower deductions, says CITN president

President and Chairman in Council, CITN, Innocent Ohagwa

The Chartered Institute of Taxation of Nigeria (CITN) said that initial concerns over the new tax laws have eased as implementation continues to gain traction nationwide.

President and Chairman of the Council of CITN, Innocent Ohagwa, disclosed that salary earners have been reporting lower deductions in their monthly salaries since the law took effect in January.

According to him, early feedback from workers indicates that the changes are already reflected in their monthly take-home pay. While those exempted under the new framework remain unaffected, individuals within revised tax bands are experiencing either reductions or adjustments in line with the law.

Speaking in Lagos ahead of the CITN’s 28th Annual Tax Conference, scheduled to hold in Abuja, Ohagwa said the reforms, anchored on the Nigeria Tax Act 2025 and related legislations, represent the most extensive overhauls of Nigeria’s tax system in decades. A key feature, he noted, is the harmonisation of over 60 state taxes and levies into nine, a move that is already easing the burden on businesses and local communities.

He added that nuisance levies and multiple taxation, often associated with roadblocks and informal collections, are gradually being eliminated, with more than 15 states having passed the enabling laws through their respective houses of assembly.

Ohagwa disclosed that corporate organisations are aligning their systems with the new requirements, while tax authorities are intensifying capacity-building efforts to ensure seamless implementation.

He expressed optimism that sustained compliance and effective administration would significantly reduce Nigeria’s reliance on borrowing, noting that improved revenue generation could strengthen the country’s ability to meet its fiscal obligations.

On the forthcoming conference themed, “Tax Reforms and Global Relevance: Positioning Nigeria’s Tax System for a Sustainable Future”, he said the event, scheduled to begin on May 11 in Abuja, will bring together state actors at both national and subnational levels to examine critical issues shaping Nigeria’s tax system and economic future particularly in the context of the ongoing tax reforms.

Describing taxation as a dominant national discourse, Ohagwa said awareness has deepened across different segments of society, from religious institutions to small businesses, with more citizens showing willingness to comply.

To underscore his commitment, he revealed that he filed his tax returns for the year before the March deadline.

“When each one of us tries to comply and respect the new law, we will get all the benefits embedded in it,” he said.

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