The Tinubu Lagos Tax dragged everyone into the Lagos state Tax net and that’s what he want to replicate in this proposed bill when the Revenue collection Agency will liaise with the Banks to get details of all customer transactions.
May be you are not conversant with the VAT moderations order 2020 and 2021 some goods and services where exempted from the list so the Tinubu proposed Tax Reform Bill didn’t do anything new or super by the exemptions that are inserted in it.
Most of the items they proposed to repeal were not practicable in real terms. Those who sell property can attest to the fact that proceeds from the sales of their properties have never been Taxed except in Lagos state.
If the Bill eventually becomes law, all minimum wage earners falls in the Tax net because those exempted are in the threshold of N800k and below. Those in the threshold of N801k to N2.2m are taxable. That the Bill proposed to exempt business that fall within the threshold of N50m that’s because the Tinubu led FG take into cognizance of the fact that the economy is strangulated and that brings me to ask this question why should businesses be Taxed based on turnover instead of profit. So if my customers paid me huge some of money upfront to produce goods for them, I will be Taxed based on the volume of money received instead of the profit made as will be provided by audited financial report.
The Bill proposes that the Revenue collection Agency will collaborate with the Banks to get details of transactions and anyone whose account reads N1m and above will be dragged into the Tax net notwithstanding the fact that such is receiving monies on behalf of some illiterates, handicaps and other people of various challenges.
Finally I will like you to look at section 28, 50 and 51 and give us an understanding of these sections of the Bill.
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