President Muhammadu Buhari on the 2nd of December had sent the Finance Bill 2020 – which exempts N-Power beneficiaries, workers from personal income tax – to the House of Representatives for approval. The finance bill proposes reforms of tax-related regulations.
Speaker of the House of Representatives, Femi Gbajabiamila, revealed this while reading President Buhari’s letter on Tuesday’s plenary. The House is expected to probe the bill before passage.
President Buhari had began the use of Finance Bill in 2019, updating existing tax laws and financial regulation, which includes importation of goods. Part of the Finance Bill is the import duty, which Buhari reduced to 10% from 35%.
Exclusion Of N-Power Beneficiaries, Minimum Wage Earners From Tax
The Finance Bill has also been amended to exclude N-Power beneficiaries and other minimum wage earners from Personal Income tax.
BizWatch Nigeria had reported that President Buhari disclosed that individuals earning ₦30,000 will not be made to pay the Personal Income tax.
The ₦30,000 is Nigeria’s minimum wage, and in order to shield the minimum wage earners from the rising cost of living caused by COVID-19 and inflation, Buhari excluded Personal Income tax from tax obligations of N-Power beneficiaries and other minimum wage earners.
The Finance Bill, if passed into law, is expected to take effect from January, as Nigeria’s fiscal year start next month in line with the 2021 budget. This means the exclusion will not be effective this month, until the passage of the bill.