Ismail Abdullahi, state administrator of the Nigeria Revenue Service (NRS) for Jigawa, Kano and Katsina states, has assured taxpayers in the region that obtaining a Tax Identification Number (Tax ID) does not automatically authorise deductions from their personal bank accounts.
Abdullahi said sustained engagement with individuals, businesses and other stakeholders was necessary to address misconceptions about the new tax reforms, improve public understanding and encourage voluntary compliance.
He spoke at a one day stakeholder engagement on tax compliance, held Tuesday, in Kano, where concerns were raised about the implications of the reforms for personal finances, business operations and revenue allocations to state governments.
According to him, taxpayers have expressed concerns about whether money received from relatives or borrowed for business purposes would be treated as taxable income, whether banks would automatically deduct taxes from their accounts and whether the new requirements would impose additional burdens on small businesses.
Abdullahi acknowledged that the concerns were understandable, noting that individuals and businesses needed clarity on how the reforms would affect their finances and operations.
He explained that Tax ID requirements did not, in themselves, permit automatic deductions from personal bank accounts, adding that any tax recovery must follow applicable legal provisions and procedures.
He also clarified that the standard Value Added Tax (VAT) rate remained 7.5 percent.
Abdullahi said clear and practical explanations of the reforms would help taxpayers distinguish between actual legal requirements and misconceptions, thereby reducing anxiety and preventing compliance errors.
‘Putting taxpayers first means making these explanations available, speaking to you respectfully, and helping you understand how to meet your obligations,’ he said.