The Nigeria Revenue Service (NRS) has announced that individuals earning N800,000 or less per year will no longer be required to pay personal income tax, as part of the country’s latest tax reform package.
The move, which was unveiled by the NRS on Thursday, is aimed at easing the tax burden on low‑income earners across the country. Under the new rules, anyone whose annual earnings do not exceed N800,000 will be exempt from the personal income tax that has traditionally applied to all wage earners.
While the announcement does not detail the full scope of the reform, the exemption is expected to provide relief to a significant portion of Nigeria’s workforce. The NRS has not yet released a timetable for the implementation of the new tax threshold.
Experts say the change could improve disposable income for many Nigerians, potentially boosting consumer spending in the economy. However, the government will need to balance the loss of tax revenue against the benefits of increased household spending.
Nigeria, Africa’s most populous country, has long grappled with a complex tax system. The new exemption is part of a broader effort to simplify tax obligations and encourage greater compliance among citizens.
<small>Source: Punch Nigeria — read the original story there.</small>