Nigerian government mulls fresh tax on N5m monthly earning …C0NTINUE READING HERE >>>
The Nigerian federal government plans to impose more tax on Nigerians earning N5 million and above per month.
The Presidential Committee on Fiscal Policy and Tax Reforms, chaired by Mr Taiwo Oyedele, disclosed this during an assessment workshop in Lagos on Thursday.
Meanwhile, Oyedele said the government targets a reduction in personal income tax for Nigerians earning less than N2 million monthly.
He said charging the same tax rate for Nigerians irrespective of earnings means that the country's tax policy is not progressive. He referred to more advanced economies with much higher tax rates for the wealthy.
“We are proposing that the personal income tax rate should be reduced for anybody who is earning around N2 million per month or less but the personal income tax rate should be increased for anybody earning N5 million per month or more. Between N2 million and N5 million, your PIT rate would remain the same.
“If you earn N5 million or more, your tax rate needs to go up. We are still working on the details with the governors because they are the ones mostly affected by this. In Nigeria today, if you earn N20 million per year, your tax rate is 19 per cent. If you earn N1 billion monthly, your tax rate is the same. So our tax rate is not progressive,” he said.
Earlier, the committee appealed to the government to peg the customs import exchange rate at N800 per dollar to tackle the volatility of fluctuations.
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