The Federal Government has announced that individuals engaged in commercial sex work, popularly referred to as “runs girls,” will be required to pay tax under newly reformed tax laws.
This was disclosed by Mr. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, during an engagement session at the Redeemed Christian Church of God, City of David, in Lagos.
Oyedele explained that the law does not distinguish between legitimate and illegitimate income sources, stressing that what matters is whether money was earned from providing a service or selling a product.
He said, “If somebody is doing runs girls, right, they go and look for men to sleep with. You know that’s a service. They will pay tax on it. The law does not ask whether the income is from a legitimate or illegitimate activity. It just asks you whether you have an income. ‘Did you get it from rendering a service or providing a good?’ Then, you pay tax.”
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Clarifying further, Oyedele emphasized that money sent to family, friends, or even strangers will not be taxed since such transfers are considered gifts.
“You earn a certain amount of money and you have to send upkeep to your cousin, your brother, or even a stranger; it doesn’t really matter. If the amount you are sending is money you are giving to them not because they have done something for you, then it is a gift. We call it a non-exchange transaction. That is not taxable,” he noted.
The reformed legal framework guiding the tax changes includes the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act.
The government says the reforms are designed to ensure inclusivity in tax compliance and expand the country’s revenue base.
Vanguard