Minimum wage earners to be exempted from tax payment – Buhari
Written by MaryGift Sunday on November 24, 2020
President Muhammadu Buhari on Monday announced that minimum wage earners in the country will be exempted from Personal Income Tax payment.
Buhari said the plan is one of the proposals in the 2020 Finance Bill pending before the National Assembly.
Buhari, in a speech delivered virtually on his behalf by Vice President Yemi Osinbajo, at the opening of the 26th Nigerian Economic Summit Group conference, said the measure would also help in stimulating the economy
According to a statement by the Senior Special Assistant to the President on Media and Publicity, Office of the VicePresident, Mr Laolu Akande, Buhari, the tax exemption, alongside others in the bill, would ensure the resilience of the economy.
Buhari said: “We are proposing in the new Finance Bill that those who earn minimum wage should be exempted from paying income tax. “These provisions complement the tax breaks given to small businesses last year to not only further stimulate the economy, but are also a fulfillment of promises made to take steps to help reduce the cost of transportation and the impact of inflation on ordinary Nigerians.”
Explaining the role of the private sector in building a resilient economy, the President said: “This government has always emphasised that the private sector has a key role to play in our efforts to build a more resilient and competitive economy as expressed in the Economic Recovery and Growth Plan.
“Private companies in design, construction, logistics and finance are very much engaged in our infrastructural projects in power and rail as well as road and bridges and the installation of broadband infrastructure which is an essential requirement if Nigeria is to participate actively and benefit from the 4th Industrial Revolution.
”It is clear that we must diversify the economy away from dependence on crude oil exports, speed up human capital development and improvement on infrastructure. Above all, our economy must be made more resilient to exogenous shocks. It is important for the private sector to play a key role as we work together to identify national priorities and try to influence our future national trajectory.”