The Federal Government’s tax reforms, led by Chairman Prof. Taiwo Oyedele, aim to capture all income generating activities under the tax net.
According to Oyedele, individuals providing services, including sex workers or “runs girls,” are liable to pay tax on their earnings, regardless of the legality of their activities.
“If you’re doing runs girl, it means you’re rendering a service. Therefore, you’re liable to pay tax,” Oyedele said. The tax law doesn’t differentiate between legal and illegal activities; what matters is whether income is being generated.
The reforms aim to reduce the number of taxes and levies, harmonize revenue collection, and limit the burden on people and businesses. Oyedele noted that gifts or upkeep given to relatives, friends, or strangers are not taxable, but income earned from providing services is subject to taxation.
The Federal Government is leveraging technology and tax intelligence to close the tax gap and improve revenue collection. Oyedele emphasized the importance of transparency, stating that budgets, audited accounts, and data on infrastructure and service delivery should be published.
The tax reforms are expected to promote economic growth, stability, and investment, while ensuring fiscal sustainability and Accountability. Oyedele assured that the government is committed to making the tax system more efficient and effective.
The new tax regime has sparked discussions about the impact on various sectors, including the informal economy. Oyedele’s comments have highlighted the need for clarity and consistency in tax laws and regulations.