The Minister of Finance, Budget and National Planning, Dr Zainab Ahmed says the 2020 Finance bill, when signed into law will exempt minimum wage earners from Personal Income Tax (PIT).

Ahmed made this known on Friday in Abuja at a public hearing organised by the House of Representatives Committee on Finance.

“In the light of the current economic situation, it is proposed that persons who earn minimum wage are exempted from paying PIT,” the minister said.

Ahmed explained that no new tax was introduced neither was there any tax increase in the bill.

The minister explained that the bill was to introduce reforms that would enable the country meet the current economic challenges occasioned by the COVID-19 pandemic.

She said that an amendment is being proposed to grant tax relief to companies that donated COVID-19 relief funds to government to encourage such in the future.

Ahmed said that the bill will streamline the application of incentive to banks that provided financing for primary agricultural produce.

According to her, the bill also seeks to clarify categories of agricultural businesses covered under the poorer incentive.

Ahmed said an amendment of the Company and Allied Matter Act was being proposed for the creation of an unclaimed dividend and unutilised bank balance trust fund.

She explained that dividend declared and unclaimed fund would be warehoused and owed as a perpetual debt to shareholders.

“It is proposed that such unclaimed dividend should be handed over to government as trustees in the fund created under the supervision of the Central Bank of Nigeria (CBN) and Dept Management Officer (DMO),” she said.

She said that Section 1 of the Tertiary Education Trust Fund Act will be altered to exempt small companies from paying tertiary education trust fund tax.

Ahmed said that an amendment of Section 33 of the Companies Income Tax Act has been proposed to reduce the minimum tax rate from 0.5 per cent to 0.25 per cent of gross turnover of financial year ending in Dec. 31, 2021.

Also, she said that sections 8, 25, 26, 39, 50 and 69 of the Federal Inland Revenue Service (FIRS) Act will be amended to give powers to the service to introduce technologies for tax collections and to punish staff that divulge taxpayers confidentiality.

She said that the bill will also alter the Capital Gains Tax Act to provide for tax exemption as compensation for loss of up to N10 million.

Declaring the hearing open, Speaker Femi Gbajabiamila said that the Finance Bill will determine amongst other things, the ability of the nation to fund the 2021 budget to meet the obligations of government.

He said it would determine the implementation of policies to build infrastructure, address the problem of insecurity, grow the economy, and provide jobs with living wage and lift families out of poverty.

“It is an important piece of legislation, deserving of thorough consideration, and reasoned debate by the parliament of the people, acting in the best interests of the people.

“We have a responsibility as legislators to meticulously review and examine every aspect of this Bill to ensure that we produce a legislative document that is clear in its objectives, thoughtful in the mandates it imposes and reflective of the best aspirations of all our citizens.

“This public hearing moves us closer to that laudable objective by providing an opportunity for citizens and legislators to jointly consider the contents of the Bill.

“It is expected that over the course of this public hearing, citizens will advance ideas and make recommendations that will improve the quality of the legislation and ensure the varied interests and considerations of all Nigerians are taken into view before final enactment into law of this essential legislation,” he said.

The Chairman, House Committee on Finance, Rep. James Faleke said that the creation of an inclusive, thriving and resilient economy for Nigerians and attainment of substantive reduction in the percentage of poor and unemployed Nigerians is a basic economic goal of the house.

He said that the Executive Arm of Government in the bid to properly reposition the economic fortune of the country, initiated the 2020 Finance Bill with a view to amending selected legislations.

“They include Capital Gain Tax Act as amended by the Finance Act 2019; Companies Income Tax Act as amended by the Finance Ad 2019 and Industrial Development (income Tax Relief) Act.

“Also, the Personal Income Tax, Tertiary Education Trust Fund (Establishment Etc.) Act, Customs and Excise Duties and Tariff etc. (Consolidated) Act.

“Other are Value Added Tax Act, Stamp Duties Act, Electronic Transaction Levy, Federal Inland Revenue Service ( Establishment) Act, Nigerian Export Processing Zone Authority Act, Oil and Gas Export Processing Act, Crisis Intervention Act, Unclaimed Funds Trust Fund, Companies and Allied Matters Act 2020, Fiscal Responsibility Act; and Public Procurement Act,” he said.

The rep said that the purpose of the amendments was to revitalise the economy, promote fiscal equity by mitigating instances of regressive taxation and reform domestic tax laws to align with global standards among others.

“We hereby implore all the stakeholders and the general public to assist us by making the necessary inputs that will enable us pass this Bill in the interest of the nation’s economy and the generality of the Nigerian people,” he said. (NAN)

https://www.vanguardngr.com/2020/12/finance-bill-ll-exempt-minimum-wage-earners-from-personal-income-tax-%e2%80%95-minister/amp/

We are very smart

We that are rearing cattle will never pay any tax even as we are trampling on your crops to feed. If herdsmen leads cows to eat your crops, report them to the nearest police station. Don't take laws into your hands.

What specie of human is the fool above me. the money the government gets from tax we don't feel the impact. even the minister saying this is a tax looter

Welcomed development. Not surprised as President Buhari policies has always been people friendly.

Noted, go one.

Wawu

Pay tax pay tax for those useless cretins to loot
Nobody's feeling the impact of anything this Government does....na only negative impact we dey feel steady steady

“In the light of the current economic situation, it is proposed that persons who earn minimum wage are exempted from paying PIT,” the minister said.

Good initiative.

Its a sad situation people who earn incomes at various levels are already suffering from how bad the economy is at the moment and you want to further take away money from them to increase the price of goods and services cos eventually prices will go high and incomes will surely remain static.
We are still looking for details as regards the impact of previous taxes collected

Hmmmmmmm

Hmmm. Tax that we aren't seeing the use?

So when inflation doubles overnight and the Naira loses half its value, why is the minimum wage unchanged? How can someone live on 30K a month?

Fahdiga1:
What specie of human is the fool above me The money the government gets from tax we don't feel the impact. even the minister saying this is a tax looter

What do you expect from Kaduna First Mumu?

This is why we need restructuring. Why will the federal government under true Federalism interfere with personal income tax that is not under their jurisdiction?

Why are they over taxing Nigerians and increasing the cost of fuel and food

What of food cost, data cost and feul these scammers are packing our taxes to fund their terrorists Muslim brothers

Gift96:
Why are they over taxing Nigerians and increasing the cost of fuel and food

So that the country will survive, Nigeria is broke

I still don't understand why they feel the need to have custody of investors' unclaimed dividends.

Wouldn't these funds be best utilized by the companies rather than a government that is spendthrift and corrupt?

BAD NIGERIANS POLITICAL LEADERS !

How do you collect tax in a nation that is not working?

They are only after their own personal comfort.

So, is this going to increase their salaries in any way

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Kaduna1stson:
We are very smart

We that are rearing cattle will never pay any tax even as we are trampling on your crops to feed. If herdsmen leads cows to eat your crops, report them to the nearest police station. Don't take laws into your hands.

Why are you so disconnected from the brain GOD gave you?.

If u are notoriously wasteful and a reputation for mismanagement more tax won’t help.

More taxes with wrong financial/economic policies is meaningless and ridiculous.

You people should continue taxing Nigerians. One day, una cup go full and #endsars protest will be a child's play.

Oh

Loyalist to jubril el sudan. Lolz

which one is PI tax again?
I run a company, pay my personal salary based tax, company profit tax and pension, then someone who has mismanaged the economy will wake up and tell me to pay another tax called personal income tax. What nonsense!
They can do all these because they are targeting the church and middle class Christians.