Tax Reform Bills to Benefit Nigerian Workers—Oyedele
The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Dr. Taiwo Oyedele, says some of the key provisions of the tax bills will improve the welfare of Nigerian workers.
Oyedele, on Friday in a statement, said that lower taxes would enhance the disposable income of workers. He noted that provisions to benefit workers included full exemption for workers earning up to N1.3m p.a. (over N100,000 monthly), representing not less than 35 percent of all workers in the private and public sectors from Pay As You Earn (PAYE) tax.
He said the reform bills also contained reduced PAYE tax for workers earning up to N20m p.a. (about N1.7m monthly), benefiting an additional 60 percent of all workers, and full PAYE tax exemption for members of the armed forces.
“The bills contain measures to reduce the cost of essential items such as zero Value Added Tax (VAT) on food, healthcare, and education, representing about 60 percent of all consumption.
“There is also VAT exemption on rent, transportation, renewable energy, CNG, baby products, sanitary towels, and fuel products, representing over 20 percent of all consumption.
“These items constitute an average of 82 percent of household consumption and nearly 100 percent for low-income earners to cushion the impact of rising cost of living for workers,” he said.
The tax expert added that the reform bills had incentives to facilitate higher compensation for workers. He said it contained a tax break for wage awards and a transport subsidy to low-income earners, removal of restrictions, and bureaucratic approvals for wage awards.
Oyedele said also in it was the introduction of a cap on the amount that may be taxed as a benefit in kind granted to workers.
“There are also tax waivers to promote affordable housing, VAT exemption on rent and acquisition of real property and exemption of stamp duties on rent below one million naira,” he said.
Oyedele added that it contained tax incentives for employers to hire more workers, with friendly tax rules to attract international remote work opportunities for Nigerians.
“These changes deserve to be supported by everyone who seeks the well-being of Nigerian workers.
“We believe that the Nigeria Labour Congress and the Trade Union Congress will not intentionally work against the interest of their members,” he said. #Tax Reform Bills to Benefit Nigerian Workers—Oyedele Pension Fund Assets Grows to N23.366 Trillion
