Tinubu launches personal income tax calculator under new reform laws

President Bola Ahmed Tinubu has unveiled a Personal Income Tax calculator designed to help Nigerians estimate their tax obligations under the new reform laws set to take effect in January 2026.

Announcing the tool in a post on his official X account on Friday, Tinubu said the calculator enables citizens to compare their current tax payments with what they would owe under the new system, providing clarity on the reforms’ impact on individual incomes.

He stressed that the initiative is part of efforts to build a fair and transparent tax regime that protects low-income earners and ensures equity.

“A fair tax system must never punish poverty or weigh down the most vulnerable. With the new tax laws I recently signed, we have lifted this burden and created a path of equity, fairness, and true redistribution in our economy,” Tinubu said.

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According to him, the reforms simplify compliance, guarantee progressivity, and strengthen public trust in the system.

The calculator can be accessed at https://fiscalreforms.ng/index.php/pit-calculator/.

Background 

Following the presentation of the four tax reform bills to the National Assembly by the President Bola Ahmed Tinubu-led administration, Tribune Online reports that the bills sparked seemingly unending controversies, and objections specifically from governors, lawmaker and other stakeholders from the Northern parts of the country. 

While most opposition stemmed from the proposed VAT sharing formula, Former Chief Whip and Senator representing Borno South, Ali Ndume, among other Northern stakeholders, called for withdrawal of the bills to give room for more deliberations. 

The bills are the Joint Revenue Board of Nigeria (Establishment) Bill, 2024-SB. 583; the Nigerian Revenue Service (Establishment)) Bill, 2024-SB,584; the Nigeria Tax Administration Bill, 2024-SB, 585; and the Nigeria Tax Bill, 2024-SB,586

However, after a series of back-and-forths over the bills and consultations by the National Assembly, Tribune Online reports that the bills were later passed, transmitted, and assented to by the President in June. 

Tax Reforms Implementation

Following the presidential assent to the bills during a ceremony in the Aso, Rock, the federal government announced that the implementation of the new tax laws will commence on 1 January 2026, giving stakeholders a six-month transition period to prepare.

Defending his assent to the contentious tax bills (now laws), President Tinubu said the four ‘landmark’ bills will usher in a bold new era of economic governance, stating that these reforms go beyond streamlining tax codes.

“They deliver the first major, pro-people tax cuts in a generation, targeted relief for low-income earners, small businesses, and families working hard to make ends meet,” he said.

What Tax Reform Laws Mean

By January 2026, and according to the new law, the Federal Inland Revenue Service (FIRS) is now known as the Nigerian Revenue Service (NRS). By this law, the NRS is not an agency of the federal government alone but collecting tax on behalf of the federal and other federating units that made up the country. 

One of the four bills is the Nigeria Tax Bill (Ease of Doing Business), which aims to consolidate Nigeria’s fragmented tax laws into a harmonised statute.

“By reducing the multiplicity of taxes and eliminating duplication, the bill will enhance the ease of doing business, reduce taxpayer compliance burdens, and create a more predictable fiscal environment,” the Presidency was quoted Tribune Online.

The second bill, the Nigeria Tax Administration Bill, will establish a uniform legal and operational framework for tax administration across federal, state, and local governments.

The Nigeria Revenue Service (Establishment) Bill, the third bill, repeals the current Federal Inland Revenue Service Act and creates a more autonomous and performance-driven national revenue agency—the Nigeria Revenue Service.

It defines the NRS’s expanded mandate, including non-tax revenue collection, and lays out transparency, accountability, and efficiency mechanisms.

The fourth bill is the Joint Revenue Board (Establishment) Bill.

It provides for a formal governance structure to facilitate cooperation between revenue authorities at all levels of government. It introduces essential oversight mechanisms, including the establishment of a Tax Appeal Tribunal and an Office of the Tax Ombudsman.

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