A young Nigerian man has ignited a significant online conversation after sharing a notice from his barber shop announcing the addition of Value Added Tax (VAT) to haircut services. This move is in anticipation of the new federal tax law set to take effect on January 1, 2026.
Barber's VAT Notice Goes Viral
The man, identified on social media as @HonShield, posted a photo of the notice displayed at his barber's shop. The notice, addressed to "valued clients," clearly stated that effective from the first day of 2026, a 7.5% VAT would be added to all bills at the point of payment.
The barber cited the new mandatory regulations from the Federal Inland Revenue Service (FIRS) as the reason for the change. The notice apologized for any inconvenience and thanked customers for their understanding and continued support.
Public Debate Over Tax Applicability
The post triggered a wave of reactions, with many Nigerians questioning the barber's understanding of the upcoming tax law. A key point of contention was whether small-scale businesses like a barber shop would be subject to VAT under the new regime.
Several commenters pointed out that businesses with an annual turnover below N100 million are typically exempt from VAT registration and collection. Users like @abiodunSho74728 and @Jide_Olusola argued that the barber, likely an entrepreneur not meeting that threshold, might be misinformed or attempting to collect tax for personal gain without remitting it to the government.
Other reactions reflected broader public anxiety. User @Nwalie20001 commented, "Evidence that no one is exempted in the new #taxlaw," suggesting widespread impact. Conversely, @onifadeleo described the move as "driven by greed," criticizing the tax percentage as excessive for small businesses.
Context of the 2026 Tax Law
This public discussion comes several weeks after the federal government officially announced the new tax bill, with its implementation date fixed for January 1, 2026. Since the announcement, there has been widespread speculation and reporting about which individuals and business sectors would be affected or exempted.
The incident highlights the confusion and concern among small business owners and consumers regarding the practical implications of the forthcoming fiscal policy. It underscores the need for clear public sensitization from tax authorities to prevent misinformation and potential exploitation.
In related reports, a Nigerian accountant had previously warned about penalties for non-compliance with the new law, including fines starting from N50,000 for failure to file taxes. Another report featured a Nigerian man lamenting the anticipated deduction from his salary once the law takes effect, claiming it brought him to tears.
