The federal government said that the days of being above the law in paying taxes are over.

The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, said this at the committee’s closing session on Sunday in Abuja.

Oyedele said the proposed new reforms would focus on the top 5 per cent of that sector, the middle class, and the elite for taxes.

He stated that the committee is drafting legislation to bring about necessary changes to the country’s fiscal policy and tax reform ecosystem.

The chairman stated that the new laws will ensure that reviews are continued by all governments, adding that they don’t want the entire effort to go to waste after a year or two.

He urged all stakeholders to fully cooperate with the government in implementing a new fiscal and tax policy for the general good of the citizens by ensuring compliance.

“We think that the days of being above the law in paying taxes are over. The same thing we’re saying to our leaders, whether they are elected or appointed.

“We think they have to lead by example by showing that they have paid the taxes, not only on time but correctly, to the lawful authorities as contained in the various laws,” he said.

He stated that the Federal Government is developing a system that will give tax relief to 95% of the informal sector in the country.

He said this would be achieved by exempting businesses earning N25 million a year or less from the various taxes hindering their progress over time.

“So, we think that 95 per cent of the informal sector should be legally exempted from all taxes; withholding tax, company income tax, and even payees on their staff.

“We’re using data to inform our decisions. Currently, if you earn N25 million a year or less, you don’t have to pay company income tax, and you don’t have to worry about VAT.

‘’We think that the informal sector are people who are trying to earn legitimate living; we should allow them to be and support them to grow to a point where they can then have the ability to pay taxes,” he said.

He explained that some of the taxes Nigerians complained about were already in the constitution, which the committee had examined and called for review.

Oyedele said that the committee report will go through the standard legislative process to obtain full legal backing.