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Nigerians Earning Above N1.5m Monthly Will Pay Up To 25% Personal Income Tax — Taiwo Oyedele

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Taiwo Oyedele, chairman of the presidential committee on fiscal policy and tax reforms, has announced the plan to increase personal income tax of Nigerians earning above N1.5 million under the new economic stabilisation bill.

Oyedele made this known in Abuja on Monday at the ongoing 30th Nigeria Economic Summit.

Speaking on the topic, ‘Fiscal & Monetary Policy Reforms; Removing Barriers to Private Sector Investment’, the tax committee chairman said people earning less than N1.5 million below would be exempted from the personal income tax (PIT).

He also said the wrong set of people have been taxed for so long.

“If you earn N1.5 million in a month or less, your personal income tax will go down. Of course, at the lower end, completely exempted. But if you earn more than that amount, you see it going up incrementally up to 25%,” he said.

“Today, if you earn N100 million in a month, nobody hates 19% effective personal income tax rate. We are taking that up to 25% of the ratio income. That’s because you need to balance people.”

On September 23, the federal executive council (FEC) approved the economic stabilisation bills seeking amendment of tax policies.

One of the bills offers tax relief to companies that generate incremental employment while another offers personal income relief to “people in private and public employment from N200,000 to N400,000”.

  • FG Working On A System To Tax The Right People

Oyedele also said the federal government is working on developing a system to automatically get the right people to pay taxes rather than taxing low-income earners.

According to the tax expert, the wrong people have been paying taxes like those in the formal sector.

“One of our focuses is getting people to pay taxes, particularly people on the higher end,” he said.

“We discovered that about 90 percent of people who pay taxes have no business paying taxes.

“So we are developing a system that uses an ID using the national identity number for individuals, the RC number with CAC for businesses, and all economic activities will be linked to that ID.

“So when you declare your income, and it doesn’t correlate with your economic activity, you will have to reconcile that difference. Also, you must invoice everything you do using a system connected to the government.

“If you don’t, we’ll get the information from a third party, and each time you sell, the system monitors your inventory. So, the people who need to pay taxes will pay.”

Speaking also on the new gazetted withholding tax, Oyedele said the policies will enable manufacturers and small business operators to grow the economy, thereby increasing tax revenues for the government.

“We prioritised manufacturers and SMEs in our reforms. Now, there are no taxes on manufacturers anymore,” he added.

“When we withhold your income, and you’re borrowing at 35 percent, it means you’re funding the government at 35 percent.

“How do you grow? We’ve done the same for VAT, this allows their costs to go down.”

It was earlier reported that the national assembly is considering a bill proposing an increase in the value-added tax (VAT) from 7.5 percent to 10 percent.

BIG STORY

BREAKING: Remains Of Late President Buhari Arrives In Katsina [VIDEO]

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The body of former President Muhammadu Buhari has reached Katsina State for his official burial ceremony.

Contrary to the initially scheduled arrival time, the former president’s remains landed at exactly 1:59 pm, shortly after President Bola Tinubu arrived.

The aircraft carrying Buhari’s remains landed at the Umaru Musa Yar’Adua International Airport, where President Tinubu was expected to receive it before it would be transported to Daura for the burial.

Members of Buhari’s family also arrived at the airport, including the visibly emotional former First Lady, Aisha Buhari, who was seen among the crowd.

Aisha Buhari and her children, all dressed in black, were accompanied by Nigeria’s First Lady, Oluremi Tinubu.

Contrary to earlier reports suggesting the body would be flown in as cargo, Buhari’s remains arrived aboard the presidential jet, which also carried his family and a delegation led by Vice President Kashim Shettima.

 

More to come…

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BIG STORY

Amaechi Wears Turban To Buhari’s Burial In Daura

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Rotimi Amaechi, who previously served as the minister of transportation, attended the funeral of former President Muhammadu Buhari in Daura, Katsina state, wearing a turban.

Buhari, the former president and head of state, passed away on July 13. His burial took place in his hometown, Daura, amidst national mourning.

Amaechi wore the cultural headgear to the ceremony held in honour of the late leader.

Earlier on Tuesday morning, Buhari’s remains were transported from London to Nigeria aboard the presidential jet.

Why Is Amaechi Wearing A Turban?

Amaechi received the title of Dan Amanar of Daura — which translates to “trusted son of Daura” — on February 5, 2022, as an acknowledgment of his contributions to the transport sector.

At that time, Silas Zwingina, a former deputy majority leader in the Senate, dismissed suggestions that the turbaning had political undertones, instead calling it a cultural show of gratitude by the Daura Emirate.

Zwingina stated that the Daura Emirate traditionally honours those who have made significant contributions to the development of the area.

He said it was unrelated to politics and urged people not to attach unnecessary meanings to the gesture, noting that Amaechi’s completed projects in Daura and across Nigeria stood on their own.

Amaechi’s turban has previously stirred controversy. In 2022, Musa Saidu, a leader of Arewa in the south, asked him to refrain from using the turban during political campaigns.

Saidu said the turban carries strong Islamic significance and should not be used as a political symbol.

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BIG STORY

What Buhari Told Me About President Tinubu After Fuel Subsidy Removal — Katsina Governor Radda

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Governor Dikko Radda of Katsina State shared details of his conversations with the late former President Muhammadu Buhari following his retirement, including a discussion on President Bola Tinubu’s decision to remove petrol subsidy at the start of his administration.

While addressing reporters at the late president’s burial in Daura, Radda recounted his interactions with Buhari after he left office in 2023. He described gaining insights from Buhari’s leadership and patriotic values during this period.

He said that once Buhari returned to Daura after completing his term in 2023, they were able to engage more frequently, which allowed him to benefit from the former president’s wisdom and humor.

Radda mentioned that their conversations often focused on the challenges facing Nigerians and national service.

He shared that Buhari once told him, Your Excellency, go and do your best and be honest as a leader. You cannot satisfy Nigerians; only God can do that. He added that Buhari often spoke about the burdens he faced in office but felt relieved after retirement.

According to Radda, Buhari also said, I pity Bola (President Tinubu) for what he is doing. He is a brave man for removing the fuel subsidy. When I was president, whenever I made an attempt to remove the subsidy, a lot of people would give me too many reasons not to do so. But Bola did it immediately. If he had consulted people, he could not have removed the fuel subsidy now.

Radda emphasized that this was one of the conversations with Buhari that will stay with him. He said Buhari’s passing has left a significant void in Katsina State that will be difficult to fill.

President Tinubu ended the petrol subsidy on 29 May 2023, the day he assumed office after Buhari. He said the move was necessary to support economic growth and advance national progress.

He also stated that the Nigerian economy had long been underperforming due to various structural issues that hindered its development.

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