The Nigeria Revenue Service (NRS) has clarified that the new tax law introduced by President Bola Tinubu primarily benefits the poor.

In an interview on Sunday with Arise Television, NRS Executive Chairman Zacchaeus Adedeji emphasized that the government is not imposing additional taxes. Instead, most of the exemptions under the new law favor low-income Nigerians.

“Looking at all the exemptions, more than 95% of the poor are completely exempted,” Adedeji said.

He further explained that removing Value Added Tax (VAT) on food items disproportionately helps the poor, as around 90% of their disposable income is spent on food. The same applies to transportation costs.

“So if you look at the total net benefit, the poor are the main beneficiaries of this tax reform,” Adedeji concluded.