FG to exempt minimum wage earners from PAYE tax

 

In a bid to alleviate the financial burden on low-income earners, the Federal Government panel on tax reform has made significant strides in tax reform by revealing that workers earning the minimum wage will be exempt from paying Pay-As-You-Earn (PAYE) tax, a welcome development aimed at boosting take-home pay and enhancing economic well-being.

The Chairman of the Presidential Fiscal Policy and Tax Reform Committee, Taiwo Oyedele, while responding to questions about the tax reforms on his X handle, said the current taxable income bands and rates were introduced in 2011 but due to the lack of review, the structure has resulted in a ‘fiscal drag’ where many low-income earners have been pushed to the top bracket over time due to high inflation.

According to him Nigerians earning the N70,000 minimum wage or a little above it will be exempted from the Pay As You Earn (PAYE) tax under the new tax reforms, adding that the reform seeks the discontinuation of all consumption taxes other than VAT.

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