The Federal Government is set to implement a new tax payment method allowing individuals to fulfill their tax obligations in installments.
This initiative was included in the recently submitted Nigeria Tax Bill 2024, awaiting deliberation in the National Assembly.
The proposed structure enables taxpayers to choose between making a single payment or dividing their tax liabilities into manageable monthly installments.
Payments must be completed before the filing deadline, offering greater flexibility for taxpayers.
As part of a broader effort to enhance revenue collection, the government has proposed the establishment of a dedicated account for tax refunds, managed by the Accountant-General of the Federation.
Last week, the government unveiled a series of reforms aimed at optimizing direct tax collection and reducing the involvement of various revenue collection agencies, paving the way for the formation of a centralized Nigeria Revenue Service.
The reforms also suggest the establishment of a tax tribunal and an ombudsman to address taxpayer concerns.
The draft bill outlines specific provisions regarding the installment payments, mandating that each taxpayer make their first installment no later than three months into the accounting period.
Subsequent payments will be due at the end of each month, calculated based on the estimated tax liability for the period.
Additionally, the bill addresses overpayments, stating that taxpayers will receive refunds following audits from the relevant tax authority.
The Accountant-General will oversee dedicated accounts for tax refunds, ensuring timely disbursements within 90 days of audit conclusions.
This reform aims to streamline the tax process, making it more taxpayer-friendly while improving government revenue through increased compliance.
