Research Paper on the Nigeria Tax Acts 2025: Impact on Salary Earners and Growth
The Nigerian Tax Acts, 2025 is a cardinal reform of the fiscal policy of Nigeria aimed at broadening the tax base, improve compliance, and enhance the revenue collection to support national development. In the paper, the impact of the 2025 Tax Act on the salary earners and the growth of the national economy in general are assessed. The study employs a mixed-method strategy involving secondary analysis of government reports, statute rules, and economic indicators. The study finds that while the Act favors progressive taxation and greater equity, its immediate implication has been increased tax burden on the middle class due to the rationalization of reliefs and personal income tax rate adjustments. However, in the long term, better revenue mobilization and better fiscal discipline are more likely to propel infrastructural development and social expenditure, thereby improving the economic prospect. Equitable implementation, wage adjustment, and the inclusion of better tax education for the maintenance of equity in the distribution of the tax burden and consistent national development are advisable in the study.
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