Nigerians Earning Below N1m Annually Exempted From Income Tax
Barring last-minute changes, the Senate will pass the controversial Tax Reform Bills today, exempting those earning below N1 million per annum from the tax net.
Vanguard gathered that most lawmakers who were initially opposed to the bills have changed their position following clarifications given by the Federal Government’s tax executives including the Director-General, Budget Office, Tanimu Yakubu; the Executive Chairman, Federal Inland Revenue Service, FIRS, Zacch Adedeji; and the Chairman, Presidential Committee on Fiscal Policy and Tax Reforms, Mr Taiwo Oyedele.
The tax executives, who appeared before the legislators, yesterday said among others that the bills were to tax prosperity and not poverty and that those earning less than One Million Naira a year would be exempted from income tax. They also said sharing of Value Added Tax, VAT, which favours states like Lagos, will be reviewed and made more equitable.
Deputy President of the Senate, Senator Barau Jibrin (APC, Kano North) said when he presided over yesterday’s plenary session that debate on the tax bills will continue today.
Vanguard gathered that the bill will be listed as first reading, followed by an executive session by the Senators, and then expeditiously moved to second reading and passage.
Recall that prior to the rushed break, the Senate had on Wednesday, October 30, 2024, listed the tax reform bills in the Order Paper for first reading, but stood it down along with other items for the screening and confirmation of Amb. Bianca Odinaka Odumegu-Ojukwu and six others as ministers- designate appointed by President Bola Tinubu.
The tax reform bills were however not listed in the Order Paper the following day (Thursday, October 31, 2024) for any legislative action before the legislators embarked on a three-week recess.
Read full story: https://www.vanguardngr.com/2024/11/tax-reform-bills-nigerians-earning-below-n1m-a-year-exempted-from-income-tax/
