Nigeria’s National Revenue Service (NRS) has reassured citizens that savings in bank accounts are exempt from taxation, and only profits earned on these savings, such as interest, will be taxed. This clarification comes amid concerns about new tax reforms aimed at boosting non-oil revenue and simplifying tax compliance.
According to the NRS, the tax policy is not new and aligns with global practices, where tax authorities deduct taxes on investment income. The agency emphasizes that the tax applies to investment earnings, not principal savings, and encourages citizens to comply with tax regulations.
The clarification is expected to provide relief to individuals and businesses, promoting a culture of voluntary tax compliance. The NRS assures that the reforms will benefit low-income earners and promote economic development.
In related news, the Nigerian government has been working to improve revenue collection and transparency, with a focus on non-oil sectors. The tax reforms are part of efforts to strengthen the country’s economy and promote sustainable growth.
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