The Federal Government is proposing a new tax payment option that allows individuals to pay taxes in instalments, as outlined in the Nigeria Tax Bill 2024 submitted to the National Assembly. This move aims to provide flexibility in fulfilling tax obligations, either through a lump sum payment or spreading payments over time before the due date.
In addition, the government plans to establish a special account for tax refunds by the Accountant-General of the Federation. These proposed reforms are part of a broader effort to enhance revenue collection, including the creation of the Nigeria Revenue Service and a tax tribunal.
The draft bill details the procedures for tax payment in instalments, with specific guidelines on monthly payments and deadlines. It also guarantees taxpayer refunds following audits, with set rules for processing and timely refunds.
Furthermore, the bill addresses the distribution of value-added tax revenue, allocating percentages to the Federal Government, State Governments, and Local Governments, with provisions for derivation-based distribution.