Taiwo Oyedele Highlights Benefits of President Tinubu’s Tax Reform Bills

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has outlined ten key benefits of President Bola Tinubu’s controversial tax reform bills currently before the National Assembly.

Oyedele shared the benefits in a statement on his official X account on Monday amid mounting opposition from Northern governors and other regional groups against the passage of the four tax bills.

According to Oyedele, the reforms will significantly benefit low-income earners, with individuals earning up to ₦83,000 monthly (₦1 million annually) exempted from the Pay As You Earn (PAYE) tax. Additionally, PAYE will be reduced for those earning less than ₦1.7 million annually.

He further explained that the reforms would ensure zero value-added tax (VAT) on essential goods and services such as food, healthcare, education, and transportation.

Below are the ten benefits of the proposed reforms as highlighted by Oyedele:

1. Complete exemption of low-income earners earning up to ₦1 million annually (₦83,000 per month) from PAYE tax.
2. Reduction in PAYE tax for individuals earning a monthly salary of ₦1.7 million or less.
3. Zero VAT on essential items, including food, healthcare, education, electricity generation, and transmission.
4. VAT exemption on transportation, renewable energy, compressed natural gas (CNG), baby products, sanitary towels, rent, and fuel products.
5. Tax breaks for wage awards and transport subsidies targeted at low-income earners.
6. Incentives for employers to increase hiring beyond their workforce numbers in the past three years.
7. Exemption of stamp duties on rent agreements below ₦10 million.
8. PAYE tax exemption for personnel in other ranks of the armed forces actively engaged in fighting insecurity.
9. Simplified tax rules for remote workers and digital nomads.
10. Clarified taxation rules for digital assets to avoid double taxation and allow deductions for losses.

The bills, which include the Joint Revenue Board of Nigeria (Establishment) Bill, 2024, Nigeria Revenue Service (Establishment) Bill, 2024, and Nigeria Tax Bill, 2024, are aimed at overhauling Nigeria’s tax laws to promote economic growth and sustainability.

Oyedele added that the reforms would benefit small businesses, encourage investments, and boost revenue for subnational governments.

The bills have already passed second reading in the Senate and are expected to be debated further in the coming weeks.