In a statement released on Workers’ Day, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, emphasized that the proposed tax reform bills are designed to support Nigerian workers and small businesses. Sharing his message via his official X account, Oyedele called for collective support of the reforms, noting they aim to improve the net income and overall welfare of workers across the country.

He highlighted several key provisions in the bills, including lower taxes and increased exemptions that directly benefit both employees and small business owners.

Highlights of the Proposed Tax Reforms:

• PAYE Tax Relief: Full exemption for individuals earning up to ₦1.3 million annually (over ₦100,000 monthly), covering at least 35% of workers in both the public and private sectors.
• Targeted Reductions: Reduced PAYE for those earning up to ₦20 million annually (~₦1.7 million monthly), potentially benefiting another 60% of workers.
• Special Exemptions: Members of the armed forces will be fully exempt from PAYE tax.
• Essential Goods VAT-Free: 0% VAT on key items like food, healthcare, education, rent, transportation, renewable energy, baby products, sanitary towels, and fuel. These items account for 82% of average household spending and nearly 100% for low-income earners.
• Support for Workers: Incentives to boost take-home pay through tax breaks on wage awards and transport subsidies, with a cap on taxable benefits-in-kind to reduce the tax burden on workers.
• Affordable Housing: VAT exemptions on rent and property acquisition, along with stamp duty waivers for rent under ₦1 million.
• Boosting Employment: Tax incentives for employers to hire more staff, aimed at reducing unemployment and encouraging economic growth.
• Support for SMEs: 97% of small and medium enterprises with turnover of ₦100 million or less will be exempt from taxes.
• Encouraging Remote Work: Friendly tax policies designed to attract international remote work opportunities for Nigerians.

Oyedele urged organized labour, including the NLC and TUC, to back the reforms, assuring that the bills are in the best interest of their members and all working Nigerians.

“These reforms are not just about taxes—they’re about fairness, relief, and creating opportunities for the people,” he said.

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