The new tax regime has been described as a major catalyst for building public confidence, improving voluntary compliance and strengthening tax administration in Nigeria.
The State NRS Administrator,Jigawa,Kano and Katsina ,Isma’il Abdullahi, stated this during a stakeholder engagement and tax reform sensitisation programme organised by the Nigeria Revenue Service (NRS) in Kano.
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He said the reforms had generated questions and concerns among individuals, business owners and state governments, particularly regarding bank account deductions, the taxation of personal transfers and loans, Value Added Tax (VAT), and revenue allocation to subnational governments.
According to him, many Nigerians want assurances that their money will remain safe, their businesses will remain viable and governments will continue to receive the resources needed to provide essential services.
Abdullahi explained that the new tax requirements do not, by themselves, authorise automatic deductions from personal bank accounts, stressing that tax collection and recovery must follow applicable laws and established procedures.
He also clarified that the standard VAT rate remains 7.5 per cent, noting that concerns about possible increases and additional burdens on small businesses could be addressed through proper communication and public sensitisation.
The NRS official said that since the commencement of the tax reforms, he had engaged in discussions aimed at comparing public concerns with the provisions of the law and explaining how the new framework operates.
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He gave the example of a trader who receives a loan of 500,000 naira, explaining that such a bank credit should not automatically be treated as sales revenue or profit.
He emphasised the importance of keeping appropriate records and supporting documents to establish the nature of financial transactions and prevent misunderstandings during tax assessments.
Abdullahi said the NRS was committed to providing clear guidance, consistent treatment and accessible support to taxpayers to help them understand their obligations, applicable reliefs, record-keeping requirements and procedures for challenging tax decisions.
He urged taxpayers to provide accurate information, maintain proper records and fulfil their obligations within the stipulated time, while encouraging the service to remain responsive to public concerns.
According to him, clear procedures, practical explanations and accessible services would strengthen public trust and create favourable conditions for voluntary tax compliance.
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He encouraged participants to ask questions, share their experiences and seek clarification on issues affecting their businesses and personal finances, expressing hope that the engagement would leave them better informed and more confident about the new tax regime.
The programme, themed Driving Voluntary Tax Compliance Through Tax Reform Awareness, attracted a large turnout of participants from different sector