The Federal Government has introduced a new tax payment option allowing individuals to pay their taxes in installments rather than a single lump sum. This proposal is included in the Nigeria Tax Bill 2024, which has been submitted to the National Assembly for consideration and approval.
The new bill aims to enhance revenue collection by providing taxpayers with more flexibility in fulfilling their tax obligations. Individuals will now have the option to spread out their tax payments over time, provided they settle the final installment before the designated due date for filing.
To facilitate tax refunds, the government proposes the creation of a special account by the Accountant-General of the Federation. This account will be used to manage and process tax refund claims.
The government has also introduced a comprehensive set of tax reforms aimed at boosting revenue collection. These reforms include the establishment of a Nigeria Revenue Service, which will consolidate revenue collection activities currently dispersed across various agencies. Additionally, a tax tribunal and ombudsman will be created to address tax disputes and ensure fairness.
The draft bill outlines the specific guidelines for installment payments, including the due dates for each installment and the calculation of the final installment amount. It also details the process for tax refunds, including the timeframe for processing claims and the dedicated account for managing refund payments.
The government’s proposed tax reforms aim to improve the efficiency of tax collection and reduce the burden on taxpayers. By offering installment payments and creating a dedicated refund account, the government hopes to enhance taxpayer compliance and streamline the tax administration process.
