Solomon Adeola, chairman of the Senate Committee on Appropriations, has said Nigerians earning N800,000 or less annually are now exempt from paying personal income tax under the new tax reform laws signed by President Bola Ahmed Tinubu.
Gatekeepers News reports that President Tinubu on Thursday, signed into law four tax-related bills: the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board (Establishment) Act.
In a statement on Sunday, Adeola noted that the exemption is part of the far-reaching benefits embedded in the four newly enacted tax laws aimed at promoting equity, reducing the burden on low-income earners, and simplifying tax compliance.
Adeola described the reforms as “historic and transformative,” aligning with President Tinubu’s Renewed Hope Agenda.
He said, “The new tax laws will deliver tangible benefits to ordinary Nigerians.”
“Key among these is the zero-rating of VAT on essential goods and services such as basic food items, education, healthcare, sanitary products, and locally manufactured pharmaceuticals.”
“More importantly, individuals earning N800,000 or less annually are now fully exempt from personal income tax, thereby easing the financial burden on low-income earners and boosting their disposable income.”
The senator noted that the Nigeria Tax Act will unify fiscal legislation and eliminate multiple taxation to ease compliance for individuals and businesses.
He said the Nigeria Tax Administration Act sets out uniform procedures for tax administration, while the Revenue Service Act expands the mandate of the now-renamed Nigeria Revenue Service to include both tax and non-tax revenue.
Adeola added that the Joint Revenue Board Act creates a legal framework for harmonised tax administration, establishes tax appeal tribunals, and introduces the Office of the Tax Ombudsman to safeguard taxpayers’ rights.
The senator said small businesses and start-ups will benefit from simplified registration processes, increased exemption thresholds, and protection against multiple taxation across all levels of government.
He said rural and underserved communities will benefit from better revenue allocation to public infrastructure, including schools, health centres, and roads.
Adeola praised the national assembly for subjecting the bills to robust scrutiny, including public hearings and consultations with stakeholders.
He urged Nigerians to support the full implementation of the laws and said early signs of economic recovery are already visible under Tinubu’s administration.
He said, “The GDP has rebounded to 3.86%, national revenue has grown from #12.37 trillion to N21.6 trillion, and inflation is declining.”
“The abolition of the dual exchange rate regime has stabilised the naira, restored investor confidence, and attracted over $40 billion in foreign direct investment.”
Adeola noted that Nigeria also recorded a N18 trillion trade surplus, while non-oil exports have increased by nearly 40 percent.
