Senator Solomon Adeola, representing Ogun West, has clarified that Nigerians earning N800,000 or less annually are now exempt from paying personal income tax following the signing of new tax bills into law by President Bola Tinubu.
The lawmaker said this in the statement signed by his spokesperson Kayode Odunaro,
.According to Adeola, chairman of the Senate Committee on Appropriations, this move is expected to ease the financial burden on low-income earners and increase their disposable income.
”Individuals earning N800,000 or less annually are now fully exempt from personal income tax, thereby easing the financial burden on low-income earners and boosting their disposable income,” he said in a statement over the weekend.
The chairman of the Senate Committee on Appropriations said the four bills signed into law by President Bola Tinubu would transform Nigeria’s fiscal landscape, eliminate burdensome taxes imposed on vulnerable Nigerians, reduce tax compliance complexities, foster domestic productivity and help position the country as the destination of choice for foreign direct investments.
He said that with the enactment of the four tax laws Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service (Establishment) Act and Joint Revenue Board (Establishment) Act –, the President demonstrated the political will to initiate and see through critical reforms required to promote inclusive growth and economic development in Nigeria.
“In specific terms, the Nigeria Tax Act will provide a unified fiscal legislation governing taxation in Nigeria, while reducing tax duplication and multiplicity to simplify tax compliance for individuals and businesses.
“The Nigeria Tax Administration Act will provide uniform procedures for the consistent and efficient administration of tax laws to facilitate compliance by taxpayers and optimization of tax revenues.
“Importantly, it is worthy to mention that these reforms will deliver tangible and far-reaching benefits to ordinary Nigerians.
“Key among these is the zero-rating of VAT on essential goods and services such as basic food items, education, healthcare, sanitary products and locally manufactured pharmaceuticals, making them more accessible and affordable for the general population,” he said.
He enjoined all Nigerians to support the full implementation of the tax laws which would commence by January 2026.
