One of the highlighted news stories last year in my country; especially towards the end of the year was the New Tax Rule, said to come into effect January 1st, this year. Well, we're in it already, living the new rule superimposed upon the citizens by the government. Whether it's palatable or not, the citizens would have to comply, which is something that beats me about such rules and systems.
I understand it's not only in my nation that there's a “reform” to the tax law. While checking up on the matter some days back, I bumped into a new reform concerning tax from the United States. Tax seems to be a major revenue generation for a country, and while that can be both plausible and yet a burden on the citizens, what irks me is seeing that it isn't used to benefit the federal state, which can be adjudged by how much that has been put into necessary projects.
The introduction of the new tax rule had many misconceptions in my country. The funny one, if I may was the messages that circulated concerning transfer descriptions that went rampant towards the end of last year. I saw several of them, which suggested that you needed to make accurate and certain descriptions to avoid being taxed on the money that come into one's account. I guess the misunderstanding stemmed from when people thought every incoming transfer was subject to being taxed－and 25% or so.
Perhaps it was true to be so, because while I was scrolling online some days back, I saw something that suggested that there had been a silent kind of adjustment of the tax bill that had been passed and in effect already. Some individuals and bodies towards the end of last year called for a reconsideration of the tax rule; yet to be in effect, calling it unacceptable. So, that makes me think that the early conceptions about it might hold.
From my little research, I got to understand that the tax rate is categorised based on a person or corporate body's income on an annual basis. Find the breakdown below;
Annual Income (N) | Tax Rate (%) |
|---|---|
0－800,000 | 0% (No tax) |
800,001－3,000,000 | 15% |
3,000,0001－12,000,000 | 18% |
12,000,001－25,000,000 | 21% |
25,000,001－50,000,000 | 23% |
Above 50,000,000 | 25% |
Sourced from ChatGPT (Mercans Global Payroll & PEO).
Huge numbers, right?
It's noteworthy of mention that content creators, freelancers, business owners, and non-government-affiliated earners resident in the country are also subject to these tax rates, which makes it a major dispute for many citizens. Seeing that there's a gross level of unemployment here, and many individuals took risks to build something for themselves which succeeded without any help from the government, these people are also asked to remit in tax what their sweats have built. You can understand the reactions towards that.
For now, the tax matter has been quite silent. But I consider that it's only a matter of time before a protest or something might occur, especially when enforcers of this tax law begin to take action. Then, the voice of displeasure of many citizens would be heard. Besides, since notable projects done with taxes collected in times past can't really be traced or aren't commensurate even if they are, it makes the whole idea, the reform and the emphasis highly appalling amongst many. Perhaps, it could mean for good, as the government claims.
