FG to exclude minimum wage earners from income tax payment 

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By Francis Ogwo

As a means of ameliorating the harsh economic difficulties in the country, the Federal Government is proposing in the new Finance Act that minimum wage should be excluded from paying income tax.

President Buhari announced this through his official Twitter handle, @MBuhari, on Monday.

“We are proposing in the new Finance Act that those who earn minimum wage should be exempted from paying income tax.” — President @MBuhari

According to President Buhari, this new provision would boost the tax breaks made available to small businesses last year aimed at stimulating the economy while adding that the move was a fulfilment of the promises made to help reduce cost of transportation and the impact of inflation on ordinary Nigerians.

Recall that the national minimum wage for Federal workers in Nigeria stands at N30,000 in 2020, which equaled to about 77 U.S. dollars.

In September this year, the Federal government had agreed to facilitate the removal of tax on minimum wage and also agreed to work with labour unions in the housing and gas schemes.

This led to the suspension of a planned nationwide strike by the Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC).

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