The Nigerian government is set to increase personal income tax for individuals earning above N1.5 million under the new economic stabilization bill.
Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, announced this at the 30th Nigeria Economic Summit in Abuja on Monday.
According to Oyedele, those earning less than N1.5 million will be exempt from personal income tax, while higher earners will see their tax rate increase incrementally up to 25%.
“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%,” Oyedele explained.
The Federal Executive Council had approved the economic stabilization bills on September 23, which include tax relief for companies generating incremental employment and personal income relief for those earning between N200,000 to N400,000.
READ ALSO: FG Proposes Law Amendment To Make Foreigners In Nigeria Obtain NIN, Pay Taxes
Oyedele emphasized the need to tax the right people, stating that 90% of current taxpayers have no business paying taxes.
The government, he noted, is developing a system to automatically collect taxes from high-income earners using National Identity Numbers and business registration numbers.
The new policies aim to support manufacturers and small business operators, enabling them to grow the economy and increase tax revenues.
“We prioritised manufacturers and SMEs in our reforms. Now, there are no taxes on manufacturers anymore,” Oyedele said.
This move is expected to reduce costs for businesses and promote economic growth.
