Members of the Nigerian armed forces and others involved in fighting insecurity will be exempt from paying income tax, also known as Pay As You Earn (PAYE).
This is according to Mr Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms.
In a detailed post on his LinkedIn account, Oyedele explained that the proposed tax reforms are pro-labour.
He made this post in response to calls from the Nigerian Labour Congress (NLC) requesting that the bill be withdrawn from the National Assembly.
The post said:
Mr Oyedele added that one-third of Nigerian workers in both the public and private sectors would be exempt from PAYE tax. This, he said, includes all low-income earners with a monthly salary of N83,000 or less.
Nigerian workers earning N1 million per annum or less will, therefore, be completely exempted from the PAYE tax.
The tax reforms would also reduce the tax burden of other Nigerian workers earning up to N1.7 million monthly, meaning that another 60% of the Nigerian workforce would end up paying lower taxes than they currently do.
This would free up more disposable income funds to be channelled into other living expenses and ease the lives of Nigerian workers.
Oyedele’s post read further;
The proposed Tax reform bill also provides for zero Value Added Tax (VAT) on necessities, including food, education, and healthcare.
Other zero VAT items include transportation, CNG and fuel products, sanitary towels and baby products.
In related news, TimesNow.com.ng reported that more than 90% of Nigerian workers will pay less taxes when the Tax reform bill takes effect.
Mr Oyedele compared the existing tax bills and the proposed reforms, showing how 90% of workers would pay less taxes under the new bill.
He explained that only those earning above N5 million monthly would pay higher taxes under the new Tax regime, adding that the bill is pro-poor.
Source: TimesNow.com.ng
