No Tax on Inheritance – Bayo Onanuga Clarifies Tax Reform Bill

No Tax on Inheritance - Bayo Onanuga Clarifies Tax Reform Bill

Bayo Onanuga, the Special Adviser on Information and Strategy to President Bola Tinubu, has addressed concerns raised in the Muslim North regarding the Tax Reform Bill, stating that there is no provision in the bill that proposes taxing family inheritance, which is prohibited by Islamic teachings.

In a post on his X (formerly Twitter) handle on Friday, Onanuga clarified the misunderstanding that has arisen among some northern scholars. He explained that the bill recommends taxing income, not inheritance, as some have mistakenly claimed.

Clarifying the Misunderstanding

Onanuga highlighted that some respected intellectuals and academics in northern Nigeria had erroneously referred to a section of the bill, specifically Chapter 2, Part 1, Section 4, Sub-section 3 of the National Tax Bill, which they interpreted as a proposal to tax inheritance. However, Onanuga emphasized that this section is actually related to taxing income, not inheritance.

He quoted the section, which discusses income, profits, or gains that are chargeable to tax:
“Income of a family recognized under any law or custom in Nigeria as family income in which several interests of individual members of the family cannot be separately determined.”

Onanuga clarified that this section refers to family income and not inheritance, and he reaffirmed that the entire bill does not include any proposal to tax inheritance, which would violate Islamic principles.

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Reassuring the Public

Onanuga concluded by reassuring the public that the bill does not conflict with Islamic injunctions. “There is no proposal to tamper or deduct tax from inheritance, which is forbidden in Islam,” he stressed.

This clarification aims to address the concerns and misconceptions surrounding the Tax Reform Bill, which has been the subject of debate in various parts of the country.

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