Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has itemised ten benefits of President Bola Tinubu’s controversial tax reform bills.
The bills are currently before the National Assembly.
Oyedele listed the 10 benefits in a statement on his official X account on Monday.
This is coming amid stiff opposition from Northern governors and other groups in the region, who are against the passage of the four tax bills.
However, according to Oyedele, low-income earners (N83,000 monthly) will be exempt from the Pay As You Earn (PAYE) tax.
Similarly, he emphasised that PAYE will be reduced for those earning less than N1.7 million per annum.
Oyedele noted that households and individuals will enjoy zero value-added tax on food, health care, education, and transportation.
Below are the benefits, as listed by Oyedele.
Complete exemption of low-income earners up to N1m p.a. (about N83k per month) from PAYE.
Reduced PAYE tax for those earning a monthly salary of N1.7m or less
Zero (0 percent) VAT on food, healthcare, education, electricity generation, and transmission.
VAT exemption on transportation, renewable energy, CNG, baby products, sanitary towels, rent, and fuel products.
Tax break for wage award and transport subsidy to low-income earners.
Tax incentives for employers to hire more people incrementally than in the previous 3 years
Exemption of stamp duties on rent below N10m
PAYE tax exemption for other ranks and armed forces fighting insecurity
Friendly tax rules for remote workers and digital nomads
Clarity on taxation of digital assets to avoid double taxation and allow deduction for losses.
The bills, which include the Joint Revenue Board of Nigeria (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024; and Nigeria Tax Bill, 2024, are aimed at revamping the country’s tax laws.
Oyedele added that the bills will benefit small businesses, investments and subnationals.
The bills that have been passed for second reading in the Senate.
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