Nigerians are debating President Bola Ahmed Tinubu's proposed tax reform proposals in great detail. Many people are still ignorant of the benefits that these reforms can offer to the vast majority of Nigerians, despite the conflicts between supporters and opponents. Here is all you need to know, broken down into simple terms, from lowering taxes for small businesses to relieving the financial strain on low-income individuals. What's the commotion about? Four tax-related measures were forwarded to the National Assembly by President Tinubu. They are:

Nigeria Tax Administration Bill Nigeria Tax Bill Establishment Bill for the Nigeria Revenue Service and Joint Revenue Board. These proposals aim to update Nigeria's antiquated tax rules, but they have also sparked debate among governors and regional leaders over fairness and revenue distribution. The good news is that the Tinubu Tax Reforms are intended to help ordinary Nigerians, tiny enterprises, and the impoverished.

These benefits include low-income earners' income tax relief. You would save N84,000 a year if your annual income is N800,000 or less because you won't have to pay income tax.

2. A higher threshold for the highest possible tax rates Unlike the present threshold of N3.2 million, only individuals earning over N50 million will be subject to a 25 percent income tax rate.

3. Tax Exemptions for Small Businesses Income tax would no longer be paid by companies with turnovers under N50 million, up from the previous level of N25 million.

4. Lower Corporate Income Tax Rates  By 2026, corporation taxes for medium-sized and big businesses will be reduced from 30% to 25%.

5. Removing the "Minimum Tax" The statutory 1% gross earnings tax will no longer apply to businesses that do not report profits.

6. Less Work for Large Companies  The existing 3.75% in additional taxes is replaced with a new 2% development charge, which would directly support student loans starting in 2030.

7. VAT modifications While the federal government's portion of VAT revenue decreases from 15% to 10%, the sharing formula states will now receive 55% of the money, up from 50%

8. Progressive VAT Increase VAT rates will rise gradually from 7.5% today to 15% by 2030—but basic necessities like food and medicine remain exempt.

9. Affordable Food and Essentials No VAT will be charged on food items, electricity, school fees, or medical services, ensuring prices stay low for the poor.

10. Incentives for Gas Investment  Both related and unrelated gas projects are encouraged to increase the energy supply by tax advantages. Revolutionizing Tax Administration. The Nigeria Tax Administration Bill offers fresh approaches to guarantee justice and compliance.

11. Apprehending Tax Avoiders Bank records are used to identify high spenders for tax audits (individuals spend N25 million per month, organizations spend N100 million).

12. Flexibility in Payment It is now possible to pay taxes assessed in foreign currencies in Naira using the official exchange rates.

13. Simplified Groupings To free up regulatory authorities to concentrate on monitoring, the Nigeria Revenue        Service (NRS) would assume tax-collecting responsibilities from organizations like Customs.

14.    Guarantees of Tax Refunds  To guarantee on-time payments, cash for confirmed tax refunds will be subtracted from collections. Simplifying taxes and empowering local governments.  Equally revolutionary is the Joint Revenue Board Establishment Bill:

15. Local Revenue Committees To increase efficiency, LGAs will oversee taxes, penalties, and rates within their domains.

16. Harmonized Penalties and Offenses To increase compliance across the country, tax rules will now have consistent penalties.

17. Settlement of Conflicts Disputes, including those involving residency for tax reasons, will be resolved by a Tax Appeal Tribunal.

18. Advocacy for Taxpayers If tax officials treat residents unfairly, a Tax Ombudsman Office will assist them in seeking justice. The Significance of This Tinubu's reforms' proponents contend that they are pro-efficiency, pro-growth, and pro-poor.

These proposals seek to lessen Nigeria's reliance on oil revenue while promoting a more equitable and inclusive tax system by providing exemptions for small enterprises and low-income individuals as well as incentives for local economic activity. What comes next? The proposals are now awaiting public hearings after passing the Senate's Second Reading. Despite the ongoing discussion, experts concur that these reforms have the potential to improve the lives of millions of Nigerians and change the country's tax structure if properly executed.