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By Samaila Emmanuel Bzugu
In a landmark announcement, Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reform Committee, revealed that Nigerians earning minimum wage—or slightly above—will be exempt from Pay As You Earn (PAYE) tax once the proposed Tax Reform Bills are enacted.
During a recent press briefing addressing key concerns about the bills, Oyedele emphasized the government’s commitment to easing the tax burden on the nation’s lowest earners. This comes in the wake of the newly approved national minimum wage of ₦70,000, a significant increase from the previous ₦30,000.
The ongoing debate surrounding the tax reform has sparked controversy, particularly among northern elites who fear marginalization. However, Oyedele reassured citizens that under the new measures, nearly 98% of workers across both public and private sectors will benefit from reduced tax rates, while low-income earners will be completely exempt.
Low PAYE tax for individuals earning up to ₦1.7 million monthly, comprehensive tax exemptions for low-income earners, aligning with the policy of “not taxing poverty
Low PAYE tax for individuals earning up to ₦1.7 million monthly, comprehensive tax exemptions for low-income earners, aligning with the policy of “not taxing poverty, Significant VAT reforms, including a zero rate for essential goods and services such as food, education, and health, aimed at alleviating the financial strain on households and Enhanced opportunities for remote work to empower Nigerian youth in the global digital economy.
Oyedele addressed concerns regarding VAT allocation and assured that measures would be in place to ensure fair distribution among states, emphasizing that the reforms are designed to enhance economic activities for all.
As Nigeria stands on the brink of significant fiscal policy changes, these proposed reforms may reshape the economic landscape, fostering a fairer tax environment and empowering the nation’s workforce.
