Economy

Minimum Wage Earners To be Exempted From Tax Payment – FG

Published

4 years ago

Nov 24, 2020.

The Federal Government has disclosed plans to exempt minimum wage earners from the payment of Personal Income Tax.

President Muhammadu Buhari, who announced this on Monday, 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.”

Buhari also gave insights into the collaboration between the Central Bank of Nigeria (CBN), the Nigerian Sovereign Wealth Investment Authority (NSIA) and other stakeholders in the creation of an Infrastructure Company (Infraco) Fund to address some of the nation’s critical infrastructure needs.

He said: “It goes without saying that partnerships remain essential to attract the resources for building a solid national infrastructural base. I am pleased to inform you in this regard that we are working actively with the CBN, NSIA and state governments under the auspices of the National Economic Council to design and put in place a N15 trillion Infraco Fund which will be independently managed.

During the speech presentation at the conference with the theme”Building Partnerships for Resilience”,the Vice President responded to the issue of import duties raised by some speakers.

Osinbajo noted that the essence of “the reduction in levies on motor vehicles, commercial vehicles for transportation is to reduce the cost of transportation.”

He explained that “with subsidy removal and the increase in fuel price and the pass-through to food prices, transportation costs had to be reduced.”

The Vice-President added; “Now, the automotive policy is directed at localising the production of

The opening session of the summit featured presentations by speakers, including Chairman of the Nigerian Governors Forum and Governor of Ekiti State, Kayode Fayemi; Governor Aminu Bello Tambuwal of Sokoto State; Chief Executive Officer of MainOne, Ms Funke Opeke; and the Chief Executive Officer of GIG Group, Mr Chidi Ajaere

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