Tax Laws Cover ‘Runs Girls’ and Informal Services, Says FG
Tax Reforms Committee chairman Taiwo Oyedele says income from any service is taxable, while gifts and family upkeep transfers remain exempt.
The Federal Government has clarified that individuals in the sex trade are not excluded from taxation, as the law focuses on income generation rather than the legality of the work.
“The law simply asks if you are making money from a service or goods. If the answer is yes, then you are taxable. Even people in the sex trade, popularly called runs girls, are expected to pay tax, because they are providing a service in exchange for income,” he said.
Chairman of the Tax Reforms Committee, Prof. Taiwo Oyedele, explained that anyone earning money from providing services is required to pay tax, regardless of whether such work is deemed legal or not.
Speaking on taxation principles, Oyedele stated that funds received as gifts or for family support do not attract taxes. He noted that such transfers, which he termed non-exchange transactions, are exempt because they are not payments for services rendered.
However, he emphasized that once money is earned through any form of service whether formal, informal, or unconventional it automatically falls under taxable income.
Oyedele assured Nigerians that while service providers are liable to taxation, beneficiaries of gifts or upkeep will not be taxed. He maintained that the responsibility lies with the person who earned the income before sharing it.
Enjoyed this? Get the morning brief.
News from Nigeria and Africa, in one free email every day.
