President Muhammadu Buhari has sent the Finance Bill 2020 – which exempt N-Power beneficiaries, workers from personal income tax – to the House of Representatives for approval. The finance bill proposes reforms of tax-related regulations.
Speaker of the House of Representatives, Femi Gbajabiamila, revealed this while reading President Buhari’s letter at Tuesday’s plenary. The House is expected to probe the bill before passage. Afriupdate gathered that the Finance Bill will be used to fund the 2021 budget.
President Buhari had began the use of Finance Bill in 2019, updating existing tax laws and financial regulation, which includes importation of goods. Part of the Finance Bill is the import duty, which Buhari reduced to 10% from 35%.
Exclusion Of N-Power Beneficiaries, Minimum Wage Earners From Tax
The Finance Bill has also been amended to exclude N-Power beneficiaries and other minimum wage earners from Personal Income tax. Afriupdate had reported that President Buhari disclosed that individuals earning NGN30,000 will not be made to pay the Personal Income tax.
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The NGN30,000 is Nigeria’s minimum wage, and in order to shield the minimum wage earners from the rising cost of living caused by COVID-19 and inflation, Buhari excluded Personal Income tax from tax obligations of N-Power beneficiaries and other minimum wage earners.
The Finaance Bill, if passed into law, is expected to take effect from January, as Nigeria’s fiscal year start next month in line with the 2021 budget. This means the exclusion will not be effective this month, until the passage of the bill.
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