Nigerians earning ₦250,000 or less monthly will no longer pay personal income tax starting January 2026, according to Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms.
Oyedele made the announcement on Channels Television's Politics Today after President Bola Tinubu signed four new tax reform bills into law. The exemption is part of broader reforms aimed at creating a fairer and more efficient tax system.
The committee set the ₦250,000 threshold after analyzing average household size, cost of living, and income patterns across Nigeria. "If a household earns ₦250,000 or less, they can only cover basic needs. They are considered poor, and they should not be taxed," Oyedele explained.
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Middle-income earners (up to ₦2 million monthly) will receive tax relief, while high-income earners will see modest increases.
For small business owners, especially sole proprietors and micro-entrepreneurs, the reforms offer relief and clarity, potentially reducing compliance pressure.
Nigeria currently collects just 30% of its potential tax revenue. These new policies aim to close the gap, improve compliance, and protect the economically vulnerable.
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