By Onyeanya Ebere Immaculata
The Executive Chairman of the Nigeria Revenue Service (NRS), Dr. Zacch Adedeji, has clarified that the new tax laws do not allow authorities to tax personal or corporate bank savings, stressing that only profits and returns are subject to tax.
Speaking on Tuesday during Journalists’ Hangout on TVC, Adedeji dismissed claims that account balances, transfers, or narrations could trigger automatic tax deductions under the new regime, which took effect on January 1, 2026. He said personal transfers, gifts, and intra-account movements are not taxable and cannot be accessed by tax authorities.
Adedeji also rejected suggestions that banks could debit accounts for tax purposes, insisting no such provision exists in any law. He explained that the transition from the Federal Inland Revenue Service to NRS is a structural overhaul aimed at simplifying compliance and modernising revenue collection.
Addressing the development levy, he said it consolidates existing taxes, such as the education tax and police trust fund, to ease compliance while continuing to fund key priorities. He added that low-income earners would see reduced deductions, with essential items like food and transportation exempt from transactional taxes.
On digital assets, Adedeji clarified that only profits are taxable, not capital or losses. He noted that withholding tax remains prepaid and that existing tax clearance certificates remain valid during the transition.
The NRS chairman urged Nigerians to rely on facts rather than rumours, adding that the reforms aim to harmonise Nigeria’s tax framework, cut manual processes, and improve efficiency through technology.
