The Chairperson of the Federal Inland Revenue Service, Ifueko Omoigui-Okaru has unveiled an amendment to the Personal Income Tax Act, 2004. The new law removes tax exemptions from some categories of public office holders. But more importantly, the personal relief amount has been increased from N5,000 to N200,000 and 20% of gross income. Also, the tax tranches have been increased as well as the rates. So what does it mean for you? Well it depends on how much you earn. The old and new rates as well as the effective rates are also shown below.
Lower income earners will pay less tax with those earning less than
N1million per year paying as low as 5.4%. High income earners who were already paying top rates will just about the same amount as before especially for those earning above N30million. Those who earn above N50million will pay the same tax. So if you are a big boy like many of our Govt officials, you won’t see any significant reduction in your tax (assuming you were paying in the first place!).
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