Owing to the impact of inflation and economic hardship, the Federal Government has said it is planning to exempt minimum wage earners from paying tax.
It said the proposal is contained in the 2020 Finance Bill.
The Senior Special Assistant to the President on Media and Publicity, Office of the Vice President, Laolu Akande, in a statement said the aim is to reduce the impact of inflation on Nigerians.
The statement said that President Muhammadu Buhari noted that the incentives in the proposed bill and various economic policies of the Federal Government would ensure the resilience of the Nigerian economy to exogenous shocks.
According to the statement, the President made these disclosures in his speech delivered virtually by Vice President Yemi Osinbajo, SAN, on Monday at the opening session of the 26th Nigerian Economic Summit Group Conference with the theme: “Building Partnerships for Resilience”.
“We are proposing in the new Finance Act that those who earn minimum wage should be exempted from paying income tax.
“These provisions which complement the tax breaks given to small businesses last year will not only further stimulate the economy, but are also a fulfillment of promises made to take steps to help reduce the cost of transportation and the impact of inflation on ordinary Nigerians,” President Buhari said.
Explaining the role of the private sector in building a resilient economy, President Buhari said, “this government has always emphasized that the private sector has a key role to play in our efforts to build a more resilient and competitive economy as expressed in the Economic Recovery and Growth Plan.
“Private companies in design, construction, logistics and finance are very much engaged in our infrastructural projects in power and rail as well as road and bridges and the installation of broadband infrastructure which is an essential requirement if Nigeria is to participate actively and benefit from the 4th Industrial Revolution.”