Exempts minimum wage earners from personal income tax
By Yinka Kolawole
The Federal Government has commenced moves to create a N15 trillion Infrastructure Company (InfraCo) Fund in collaboration with the Central Bank of Nigeria (CBN), Nigerian Sovereign Wealth Investment Authority (NSIA) and other stakeholders, to bridge the nation’s infrastructure gap.
President Muhammadu Buhari who disclosed this, yesterday, in a speech delivered virtually on his behalf by Vice President Yemi Osinbajo at the opening session of the 26th Nigerian Economic Summit Group (NESG) conference, also said minimum wage earners would be exempted from Personal Income Tax (PIT) in the 2020 Finance Bill.
Buhari noted that partnerships remain essential to attract the resources for building a solid national infrastructure base.
He stated: “I am pleased to inform you in this regard that we are working actively with CBN, Nigerian Sovereign Investment Authority and State Governments under the auspices of the National Economic Council (NEC) to design and put in place a N15 trillion Infraco Fund which will be independently managed.
“The Infraco Fund will help to close the national infrastructural gap and provide a firm basis for increasing national economic productivity and growth.”
The president also said that government is proposing that minimum wage earners be exempted from the Personal Income Tax in the 2020 Finance Bill, as a way of reducing the impact of inflation on average Nigerians.
“We are proposing in the new Finance Act that those who earn minimum wage should be exempted from paying income tax.
“These provisions, which complement the tax breaks given to small businesses last year, will not only further stimulate the economy, but are also a fulfilment of promises made to take steps to help reduce the cost of transportation and the impact of inflation on ordinary Nigerians,” he added.