Panic about the new Tax Law
By MUJEEBAT IDRIS
Imagine you buy a generator from a vendor for ₦500,000. He tells you to write “Gift” so he can evade tax. You do it. The generator breaks down in a week. You go back, but the vendor refuses a refund or repair.
They’re scaring us. It’s time to talk sense.
Putting “For Food” in your bank transfer won’t save you from tax. Knowing your rights will.
Right now, my timeline is flooded with one thing: fear.
People are typing “For Family,” “For Market,” “For Travel” into every bank transfer. They think if they describe the money, the government won’t tax it.
Let’s be clear: That is not how it works. All this panic is based on a dangerous rumor and this rumor can actually backfire on you. Imagine you buy a generator from a vendor for ₦500,000. He tells you to write “Gift” so he can evade tax. You do it. The generator breaks down in a week. You go back, but the vendor refuses a refund or repair.
Under the law, you have no proof you bought anything. Your bank statement shows a “gift.” You cannot claim a warranty or sue for a faulty product because you have no evidence of a sales contract. The vendor evades tax, and you lose your money and your rights.
This is the real cost of tax panic. It doesn’t just confuse us but makes us vulnerable.
But can you blame anyone? The new tax laws start in a matter of hours, and the only conversation we’re having is based on fear and misinformation. No one is explaining the actual rules. Or let me say there is no enough public education on the subject matter.No one is talking about what this law can do for us.
I went through some of the laws. The truth is very simple and it’s being completely drowned out.
The law has two faces and we’re only looking at the scary one.
Face 1: The Helper (What no one is telling you).
This is the part they should be shouting from the rooftops:
.If your small business makes less than ₦100 million a year and your total assets are less than ₦250 million, you pay 0% company tax.
· If you earn a salary, your first ₦1.2 million is tax-free. If you earn less than ₦20 million, you now pay less tax.
· Basic food, medicines, and sanitary pads? 0% VAT.
These aren’t small things. They’re real benefits meant to help people survive and businesses grow.
Face 2: The Police (The only thing we’re talking about)
Yes, there’s a strict side. A new, more powerful tax service (the NRS) is being created. They will use your NIN to track your Tax ID. There will be penalties for not registering or for not paying what you truly owe.
But here is the catastrophic failure: Everyone is so terrified of the “Police” face that they’re doing silly things like writing “For Bread” in their transfers, while completely ignoring the “Helper” face that could actually put money back in their pocket.
We are missing the point, and it will cost us.
If all we do is hide and follow rumors, we will never claim the benefits. The small business owner will keep lying in his transfers instead of confidently registering to get his 0% tax rate. The reform, which has good parts, will become just another thing we resent and evade.
We have to change the conversation. Now.
We need to stop sharing panic and start sharing facts and explain one simple thing:
“Don’t just fear the fine. First, learn how to claim your benefit.”
We, the young people who understand both the law and the language of the streets, must become the translators. Let’s make a video that kills the “transaction narration” myth in 15 seconds. Let’s make a poster that says, “Your ₦100m Business Qualifies for 0% Tax. Here’s How.”
The government built this system. But its success depends on us understanding it. Right now, we don’t. We’re afraid. And a reform built on fear will fail.
Let’s fix this. Let’s start talking sense.
*An undergraduate of Bola Ajibola College of Law,Crescent University, Abookuta, Mujeebat Idris won the PSSG Support Group National Essay Competition 2024
