The Presidency through Taiwo Oyedele, Chairman, Presidential Committee on Fiscal Policy and Tax Reforms, said, the “Tax Reform Bills will benefits Nigerian workers”.
The statement was made in commemoration of International Workers’ Day 2025.
According to Taiwo Oyedele: “The Tax Reform Bills will benefit Nigerian workers.
“We outline below some of the key provisions of the tax bills aimed at improving the welfare of workers:
“1. Lower taxes to enhance the disposable income of workers –
a) Full exemption for workers earning up to N1.3m p.a. (over N100k per month) representing not less than 35% of all workers in the private and public sectors from PAYE tax
b) Reduced PAYE tax for workers earning up to N20m p.a. (about N1.7m per month) benefiting additional 60% of all workers
c) Full PAYE tax exemption for members of the armed forces
2. Measures to reduce the cost of essential items –
a) Zero (0%) VAT on food, healthcare, and education representing about 60% of all consumptions
b) VAT exemption on rent, transportation, renewable energy, CNG, baby products, sanitary towels, and fuel products representing over 20% of all consumptions
These items constitute an average of 82% of household consumption and nearly 100% for low income earners to cushion the impact of rising cost of living for workers.
3. Incentives to facilitate higher compensation for workers –
a) Tax break for wage awards and transport subsidy to low-income earners
b) Removal of restrictions and bureaucratic approvals for wage awards
c) Introduction of a cap on the amount that may be taxed as benefit in kind granted to workers
4. Tax waivers to promote affordable housing –
a) VAT exemption on rent and acquisition of real property
b) Exemption of stamp duties on rent below N1m
5. Incentives to stimulate employment opportunities for workers –
a) Tax incentives for employers to hire more workers
b) Friendly tax rules to attract international remote work opportunities for Nigerians
c) Tax exemption for 97% of SMEs earning annual turnover of N100m or less, harmonisation and reduction of corporate tax burden for large businesses to stimulate growth and create more employment opportunities for workers.
These changes deserve to be supported by everyone who seeks the wellbeing of the Nigerian workers. We believe that the NLC and the TUC will not intentionally work against the interest of their members.
“Happy belated workers’ day!”
THE TAX REFORM BILLS WILL BENEFIT NIGERIAN WORKERS
— Taiwo Oyedele (@taiwoyedele) May 2, 2025
We outline below some of the key provisions of the tax bills aimed at improving the welfare of workers:
1. Lower taxes to enhance the disposable income of workers –
a) Full exemption for workers earning up to N1.3m p.a.…
