The Presidential Committee on Fiscal Policy and Tax Reforms has assured Nigerian workers of favorable provisions in the proposed tax reform bills.
Despite concerns raised by the Nigeria Labour Congress (NLC), which called for more consultations on the bills, the committee highlighted that the reforms prioritize the welfare of employees, particularly those in low-income brackets.
According to the committee, individuals earning less than ₦1 million annually will be exempted from personal income tax, benefiting about one-third of workers across the public and private sectors.
Workers with annual earnings up to ₦20 million will also see reduced tax rates, extending relief to an additional 60% of the workforce.
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Special exemptions have been outlined for members of the armed forces engaged in combating insecurity, reflecting targeted relief measures in the reforms.
The committee encouraged the NLC to engage in discussions for further refinement of the bills, emphasizing the potential of the reforms to bring tangible benefits to Nigerian workers if implemented effectively.
Analysts have however, observed that what the lower income earners gain in the form of tax exemption may be expended on the higher cost of goods and services due to the transfer of burden by goods and service providers who shall be paying higher taxes.
