The Anambra State Government has warned tax evaders to desist from subverting the law, declaring that anyone found violating the new tax reforms would face stiff penalties.

President Bola Ahmed Tinubu signed four Tax Reform Bills into law on June 26, 2025. The laws include the Nigeria Tax Act (NTA), Nigeria Tax Administration Act (NTAA), Nigeria Revenue Service Act (NRSA) and the Joint Revenue Board Act (JRBA), collectively referred to as “the Acts.”

The Nigeria Tax Act (NTA) and the Nigeria Tax Administration Act (NTAA) will take effect from January 1, 2026.

The Acts are designed to comprehensively overhaul Nigeria’s tax system to drive economic growth, boost revenue generation, improve the business environment and strengthen tax administration across all levels of government.

As part of efforts to sensitise stakeholders on the new tax regime, the Dr Greg Ezeilo-led Anambra Internal Revenue Service (AIRS) organised a stakeholders’ workshop to provide insights into policy measures, compliance requirements, tax offences, penalties and exemptions aimed at curbing tax evasion.

At the gathering, participants were informed that failure to register for tax purposes attracts a ₦50,000 fine; failure to file VAT returns attracts ₦100,000; failure to deduct tax attracts a penalty of 40 per cent of the tax not deducted; failure to keep proper books attracts ₦50,000; and failure to grant access for the deployment of technology attracts a ₦1 million fine.

Other penalties include ₦200,000 for failure to use a fiscalisation system; ₦100,000 for failure to make attribution; ₦100,000 for failure to notify a change of address; while failure to remit taxes deducted at source or self-assessed taxes attracts penalties and possible imprisonment.

Addressing participants at the AIRS Tax Summit held in Awka on Thursday, the Chairman of AIRS, Dr Greg Ezeilo, emphasised that there would be “no mercy for tax evaders” in Anambra State.

Speaking on the theme, “Engaging the Stakeholders on the 2025 Tax Acts and Related Reforms,” Ezeilo said the Service under his leadership would be intentional, firm and transparent in enforcing the law.

He disclosed that key changes effective January 1, 2026, include the Federal Inland Revenue Service (FIRS) adopting a new name, Nigeria Revenue Service (NRS), and the Joint Tax Board (JTB) transitioning to the Joint Revenue Board (JRB) following its last meeting under the old structure.

On the Nigeria Tax Act 2025, Ezeilo said Nigeria has reached a major turning point with the introduction of a “one-stop shop” legal framework for taxation.

“In this sense, whatever anyone needs to know about taxation in Nigeria, the NTA 2025 provides the answer,” he said.

According to him, the new Act ushers in a new era of tax administration anchored on harmonisation, discipline, order, inter-governmental cooperation and shared prosperity for both tax authorities and taxpayers.

“Today marks a significant milestone in the annals of AIRS. After years of navigating challenges, we are now hosting the first-ever Tax Summit. From here, we embark on widespread enlightenment for Ndi Anambra and our neighbours,” he said.

Ezeilo noted that AIRS is making history by organising the first-ever Tax Summit by any state revenue service in Nigeria, describing the initiative as a major step towards reforming and modernising tax administration in the state.

He also disclosed that AIRS would, in the coming weeks, organise town-hall meetings across the state to deepen engagement with taxpayers and other stakeholders.

In his remarks, the President of the Chartered Institute of Taxation of Nigeria (CITN), Innocent Ohagwa, commended the Executive Chairman of AIRS, Dr Greg Ezeilo, for innovation and professionalism in tax administration.

Ohagwa, who was represented by a member of the CITN Council, Dr Ruth Arokoyo, said the timing of the summit was significant, given that the 2025 Tax Acts represent one of the most ambitious and comprehensive fiscal reforms in Nigeria’s history.

While applauding AIRS for its early preparations ahead of full implementation, he noted that tax reforms have far-reaching implications for institutions, businesses and citizens, and require clarity, preparation and shared understanding.

“The Service is not waiting for the law to take effect in January 2026 before acting. AIRS is preparing early, engaging widely, and positioning Anambra State to fully harness the opportunities of the new tax regime. This is the mark of a forward-thinking institution,” he said.

Ohagwa stressed that stakeholder dialogue during periods of reform is essential, noting that such platforms help taxpayers and administrators understand their obligations and the long-term benefits of compliance.

He added that CITN began engaging with the 2025 Tax Acts long before their passage and reaffirmed the Institute’s commitment to supporting AIRS in strengthening administrative systems and professional competence.

He urged tax administrators and practitioners to recommit to professionalism, transparency, ethical conduct and public service as required by the new laws.

Under the new tax regime, exemptions include Personal Income Tax (PAYE) for individuals earning the national minimum wage or less, annual gross income up to ₦1.2 million, and reduced PAYE rates for those earning up to ₦20 million annually.

Allowable deductions and reliefs include pension contributions to PFAs, National Health Insurance Scheme contributions, National Housing Fund contributions, interest on loans for owner-occupied residential housing, life insurance premiums, and rent relief of 20 per cent of annual rent up to ₦500,000.

Pensions, gratuities and retirement benefits under the Pension Reform Act (PRA), as well as compensation for loss of employment up to ₦50 million, are also exempt.

Exemptions and reliefs also apply under Capital Gains Tax (CGT), Companies Income Tax (CIT) and Development Levy. Small companies are exempt from the Development Levy, while small manufacturing and agricultural companies are exempt from withholding tax deductions on income and payments to suppliers.

Items attracting zero per cent VAT include basic food items, rent, education services and materials, health and medical services, pharmaceutical products, companies with turnover below ₦100 million, diesel, petrol, solar power equipment, agricultural inputs, equipment for agricultural use, disability aids, non-charter transport, electric vehicles and parts, humanitarian supplies, baby products, sanitary towels and land and buildings.

Stamp duties exemptions include electronic money transfers below ₦10,000, salary payments, intra-bank transfers below ₦10,000, transfers from government securities or shares, and all documents relating to the transfer of stocks and shares.