New Tax Reforms To Support Low-Income Earners, Eliminate Multiple Taxation - AKIRS

The Akwa Ibom State Internal Revenue Service (AKIRS) has assured residents that the new tax legislations taking effect from January 1, 2026, are designed to provide significant reliefs for low-income earners and streamline the tax environment for businesses.

Speaking on Friday in Uyo during an engagement with members of the Nigeria Union of Journalists (NUJ), Akwa Ibom State Council, and media organisations, the Executive Chairman of AKIRS, Sir Okon Okon, explained that the four newly enacted tax laws will simplify, harmonise, and close leakages in Nigeria’s tax system while easing the burden on small businesses.

Delivering a presentation on “Tax Reform: Synopsis of the Implications”, Sir Okon highlighted that the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service (Establishment) Act, and Joint Revenue Board (Establishment) Act are structured to work together to bring about a seamless taxation experience for Nigerians, particularly those in the low-income bracket who have long suffered from multiple taxation.

He further disclosed that, effective January 1, 2026, all Nigerians will be required to possess a Tax Identification Number (Tax ID), in addition to the existing National Identification Number (NIN).

Sir Okon, who is a member of the Presidential Committee on Fiscal Policy and Tax Reform, dismissed fears that the Tax ID policy is designed to monitor financial transactions, stressing instead that it will ease access to financial services and benefit taxpayers.

“The Tax ID will be automatically generated for every Nigerian with a valid National Identification Number (NIN). The provision of Section 8(2) of the Nigeria Tax Administration Act (NTAA) 2025 does not mean that bank accounts of citizens without a Tax ID will be blocked on January 1, 2026,” he clarified. “It simply requires that every taxable Nigerian provides a Tax ID when seeking financial services.”

Sir Okon also emphasized that the tax reforms include over 50 exemptions and reliefs aimed at reducing burdens on citizens and businesses. Notably, agricultural enterprises will benefit from a five-year tax holiday.

He listed exempted items and services to include baby products, sanitary products, land and buildings, intra-bank transfers, agricultural inputs, healthcare and medical services, and educational materials, among others.

The AKIRS Chairman called on media organisations and the NUJ, Akwa Ibom State Council to partner with the Service in sensitising the public on the provisions and benefits of the new tax laws.

Also speaking at event, the Commissioner, Ministry of Information and Strategy, Rt. Hon. Aniekan Umanah, said the engagement with journalists and media organisations was apt, at it would equip them with deeper understanding of the new Tax Law.

He said such understanding would enable journalists, as purveyors of information, to educate Nigerians on the many benefits of the law, particularly for the low -income earners, while also demystifying some of the misconceptions that might have been held by some individuals.

The Commissioner therefore, appreciated the Executive Chairman, AKIRS, Sir Okon Okon, for such collaboration, believing that this would deepen knowledge of journalists and the citizens around the Tax Law.

In his contributions, the Commissioner, Ministry of Finance, Mr. Emem Bob emphasized that the new law was coming into effect to unify the multiplicity of taxation which had adversely impacted on many businesses in Nigeria.

The Commissioner, who expressed optimism that the steps taken by AKIRS to sensitize the media were commendable, added that this would place journalists in a position to better inform the populace of the good intentment of the law, contrary to fears of double which were expressed in the early life of the law.

Mr. Bob therefore, thanked AKIRS and its Executive Chairman for the media engagement, assuring that his Ministry would continue to give the agency the needed support to succeed in driving down the knowledge and benefits of the Tax Law.

The media engagement also had in attendance, some government functionaries, including Media Aides to Governor Umo Eno, among others.