Presidency proposes exemption of minimum wage earners from income tax

 Presidency proposes exemption of  minimum wage earners from income tax

By Modupe Shodeinde

President Muhammadu Buhari has proposed that those who earn minimum income wage be exempted from paying income tax to cushion the effect of rising inflation.

The proposal, will be included in the 2020 finance bill, to reduce the effect of inflation on low income earners in the country.

The presidency made this known in a tweet on Monday.

It read: “In order to reduce the impact of inflation on Nigerians, the President Muhammedu Buhari administration, is, through the 2020 Finance Bill, proposing the exemption of minimum wage earners from Personal Income Tax,”

“These provisions which complement the tax breaks given to small Biz last year will not only further stimulate the economy, but are also a fulfilment of promises made to take steps to help reduce cost of transportation & the impact of inflation on ordinary Nigerians.”

The 2020 finance bill, which seeks to amend various acts of 13 taxes, including the personal income tax act, was approved by the federal executive council on Wednesday, and would be transmitted to the national assembly for consideration and passage into law.

According to the Minister of finance, budget and national planning, Zainab Ahmed, the bill will improve the country’s tax laws while also reducing some taxes especially for small businesses in addition to those already reduced in the 2019 finance bill.

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