According to the chairman of the Presidential tax reform committee, Taiwo Oyedele, the government has approved a new way of ease of obtaining credit and utilisation of tax deducted at source. He said the changes are made to reflect emerging issues and adopt global best practices. The new tax regime also deals with the issue of clarity on the timing of deduction and definition of key terms
“The approved regulation is expected to be published in the official gazette in the coming days,” Oyedele said yesterday in a tweet on his verified X account. The move is part of the ongoing fiscal policy and tax reform of the present administration.
Withholding tax was introduced into the Nigeria tax system in 1977 to serve as an advance payment of income tax on specified transactions. It was designed to provide the government with regular revenue flow and to serve as a means of curbing tax evasion.
