Minimum wage earners will be exempted from the Personal Income Tax to reduce the financial burden caused by the economic decline. President Muhammadu Buhari offered the exemption in the wake of Nigeria's second recession in five years.
AllNews understands that President Buhari proposed changes to the Finance Bill 2020 to reflect government's support of workers. Currently, the minimum wage is NGN30,000 in Nigeria, and with transportation cost hike and rising inflation among basic food items, cost of living for Nigerians become more expensive.
Hike in transportation cost and inflation rate has been compounded by the recession which was caused by contraction of the oil sector and non-oil sector. In a bid to reduce the impact the economic downturn will have on low income households, Buhari excluded them from paying personal income tax out of their monthly salary.
President Buhari said, “We are proposing in the new Finance Act that those who earn minimum wage should be exempted from paying income tax." He said in a tweet seen by AllNews. Buhari explained that the provision is in line with his government's promise.
“These provisions which complement the tax breaks given to small Biz last year will not only further stimulate the economy, but are also a fulfilment of promises made to take steps to help reduce cost of transportation & the impact of inflation on ordinary Nigerians." President Buhari stated.
Fakoyejo Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ)....
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