PRNigeria has debunked claims that inheritance tax has been launched into President Bola Ahmed Tinubu’s Tax Reform Invoice to focus on Muslims. The assertion, which gained traction on social media platforms, significantly WhatsApp, was based mostly on an article attributed to Prof. Kabiru Isa Dandago, a scholar at Bayero College, Kano.
The controversial declare comes amidst broader issues from northern Nigeria concerning the invoice’s potential impression on poverty and regional fairness. Some critics argue that adjustments to the distribution of Worth-Added Tax (VAT) income may disproportionately profit the South attributable to its stronger industrial base.
What Is Inheritance Tax?
Inheritance tax is a levy on wealth transferred from a deceased particular person to their heirs. In Nigeria, the tax, beforehand often called the Capital Switch Tax, was launched by Common Olusegun Obasanjo’s navy administration in 1979 however repealed by Common Sani Abacha in 1993. It was deemed inconsistent with the teachings of Islam and Christianity, the nation’s dominant religions.
The Declare
The viral article, titled “The Return of Inheritance Tax By way of the Again Door” and broadly circulated amongst northern Muslims, alleged that the Tax Reform Invoice reintroduced inheritance tax, a transfer critics described as focusing on Muslim wealth.
Truth-Test
Learn Additionally:
PRNigeria reviewed the Tax Reform Invoice and located no point out of inheritance tax. Part 4 of the invoice outlines taxable revenue however excludes inheritance. Particularly, Part 4(3) addresses revenue earned by households, not wealth transferred as inheritance.
Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Coverage and Tax Reform, clarified that no inheritance tax provision exists within the invoice. He attributed the misinformation to both misinterpretation or deliberate makes an attempt to undermine the reforms. Oyedele emphasised that inheritance is a one-time wealth switch, distinct from taxable recurring revenue.
Equally, the Federal Inland Income Service (FIRS) Chairman, Zacch Adedeji, assured Nigerians that the tax reforms wouldn’t introduce new taxes or increase present ones. Throughout an interactive session with the Senate Committee on Finance, Adedeji reaffirmed that the invoice focuses on simplifying compliance and boosting income with out imposing further tax burdens.
Response from the Writer
When contacted by PRNigeria, Prof. Dandago admitted his “suspicion” of a possible reintroduction of inheritance tax via ambiguous language within the invoice. Nevertheless, after studying of Oyedele’s clarifications, he referred to as for clearer wording within the invoice to keep away from additional misinterpretation.
Conclusion
PRNigeria’s investigation confirms that the Tax Reform Invoice doesn’t embrace any provision for inheritance tax. The declare that the invoice targets Muslims by reintroducing such a tax is unfounded and deceptive. The reforms, as outlined, purpose to streamline Nigeria’s tax system with out imposing further levies on residents.
Learn the complete PRNigeria Factcheck right here: “Is Inheritance Tax a Element of Tinubu’s Tax Reform Invoice Concentrating on Muslims?“