September 1, 2020 6:03 pm
<img src=" removed link " alt="💥" data-goomoji="1f4a5" data-image-whitelisted="" />Tax Explained<img src=" removed link " alt="💥" data-goomoji="1f4a5" data-image-whitelisted="" />
Lets take a Typical Example of an Okada or Maruwa Driver in Lagos.
He pays to NURTW Daily Extortion Fees of N350 which is not going to Govt then some small change to other Area Boys for Protection that is not Govt.
He may not have MOT for his MotorCycle or Maruwa, he may not have Road Tax, Licence or Insurance.
After deducting Petrol Food, Owo Area boys & NUTRW Gangster Touts he will make say N5k to N10k per day.
That is N1.85m to N3.65m a year and after will pay no taxes and Condemn Govt for not doing anything for him.
Is this proper. If he is paying off a loan for the vehicle the Interest payments, Insurance, MOT, Road Tax and Repair Costs are deductible from his profits.
Let's assume A typical Okada or Maruwa driver's Taxable Earnings after deductibles will be N2m per annum that is N166.6k per month. N5.5k per day His annual Tax bill after Statutory Reliefs is N186k equal to N15k per month 9.3%
Let's assume there are 50,000 Okada & Maruwa drivers on an average earnings of N2m.per annum the total tax Collectable will be N9.3bn to the state. Is that small money that your state Govt is refusing to collect.
Can someone please explain why he is not paying tax or should be entitled not to pay tax for Goodness Sake Check the FIRS site to calculate your tax. Remember to tick Self Employed