- Tax Relief for Workers: The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Dr. Taiwo Oyedele, says the tax reform bills will improve the welfare of Nigerian workers.
- Lower Taxes: The bills aim to enhance the disposable income of workers through lower taxes and exemptions.
- Exemptions: Key provisions include full exemption from Pay As You Earn (PAYE) tax for workers earning up to N1.3m per annum and reduced PAYE tax for workers earning up to N20m per annum.
- Essential Items: The bills also contain measures to reduce the cost of essential items such as food, healthcare, education, and housing.
The tax reform bills are designed to benefit Nigerian workers by increasing their take-home pay and reducing the cost of living. According to Oyedele, the bills will exempt workers earning up to N1.3m per annum from PAYE tax, which represents about 35% of all workers in the private and public sectors. Additionally, workers earning up to N20m per annum will benefit from reduced PAYE tax, covering about 60% of all workers.
The bills also aim to cushion the impact of rising living costs by exempting essential items from Value Added Tax (VAT). These items include food, healthcare, education, rent, transportation, renewable energy, and baby products, which constitute an average of 82% of household consumption. Furthermore, the bills contain incentives to facilitate higher compensation for workers, including tax breaks for wage awards and transport subsidies for low-income earners.
