The Chairman of the Presidential Fiscal Policy and Tax Reform Committee, Taiwo Oyedele, said under the expected personal income tax regime, about 90 per cent of workers in the public service and private sector will pay lower taxes.
Many Nigerians, including top politicians, have expressed fear about the new personal income tax being proposed by the committee.
But Oyedele, on his X handle, explained how the changes in personal income tax would affect the citizens. He said that under the current regime, high inflation and lack of review have resulted in “fiscal drag” where many low-income earners have been pushed to the top tax bracket over time.
“This means that an individual earning just N400 thousand a month is paying the same top marginal income tax rate as a wealthy individual earning say N20 million per month. Therefore, the tax table has become regressive rather than progressive as it…
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