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Business

Finance Bill: No tax for employees on minimum wage

A planned exemption of minimum wage earners from paying personal income tax is contained in the Finance Bill.

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Buhari sacks DG National Directorate of Employment, Nasiru Argungu

The Federal Government has disclosed it would exempt minimum wage earners from paying personal income tax, in order to stimulate the economy and improve the standard of living of minimum wage earners.

This is also in line with fulfilling promises made by the President Buhari’s administration to reduce the cost of transportation and the impact of inflation on ordinary Nigerians.

The FG stated this while disclosing the proposed exemption via the official Twitter handle of the Presidency.

The planned exemption of minimum wage earners from paying personal income tax is contained in the 3rd schedule of the Finance Bill, 2021, which seeks to support the implementation of the 2021 budget by proposing key reforms to specific taxation, customs, excise, fiscal and other laws.

The Finance bill was approved at a meeting of the Federal Executive Council (FEC) presided over by the President on Wednesday, November 18, 2020; and recently sent to the House of Representatives for consideration and passage by President Muhammadu Buhari.

What they are saying

President Muhammadu Buhari stated that:

  • “The new provision to exempt minimum wage earners from paying income tax, would complement the tax breaks allowed to small businesses last year, to further stimulate the economy.”

Mr. Taiwo Oyedele, the Fiscal Policy Partner and West Africa Tax Leader at PWC, discussed “Addressing the Finance Bill 2021” during the Regulatory Outlook for the Nigerian economy in 2021, a webinar session organized by Nairametrics. He welcomed the decision to exempt minimum wage earners from paying income tax, and said:

  • “I hope the country would, in the near future, extend this exemption to people that earn about N100, 000 per month. A country cannot become rich by taxing poverty. The money is with the people who are making money; and you have to be fair in administering taxes by asking people to pay according to their ability.
  • “In South Africa, people that earn about N150,000 per month are exempted from paying income tax. Despite this exemption, South Africa still generates more from personal income tax than the entire Federal Government generated revenues and all the taxes of the thirty-six (36) states combined, even though the population of the country is only about a quarter of Nigeria’s population.”

What you should know

  • The Finance bill may be cited as the Finance Bill 2021.
  • The proposal to exempt minimum wage earners from paying personal income tax is contained in the 3rd schedule of the Finance Bill 2021.
  • The Trade Union Congress (TUC) stated on the 23rd of September that eight (8) states are yet to commence the payment of N30,000 minimum wage.
  • The provisions of the Finance Bill 2021 shall take effect from January 2021 or at a date that shall be indicated by the National Assembly by law (or by Mr. President by order published in the official Gazette).
  • The bill is considered very critical to the implementation of the 2021 budget, according to the Minister of Finance, Budget and National Planning.

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Sigma Pensions

Adeyemi holds a PhD in Accounting Sciences. He has worked in the Educational Sector and as an Independent Consultant.

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Business

Lagos Commissioner of Police dismantles road blocks on Lagos-Badagry expressway

The Commissioner warned the concerned Area Commanders to take action on full compliance as any defaulter will be sanctioned accordingly.

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The Commissioner of Police in Lagos State, CP Hakeem Odumosu, has ordered the immediate dismantling of all illegal roadblocks by police teams from the command on the Lagos-Badagry expressway.

The directive is to checkmate the illegal activities of the police on that route which have been condemned by the government, some stakeholders and international bodies and also bring sanity and decency to their operations along that axis.

That disclosure is contained in a statement signed by the Police Public Relations Officer of the Lagos State Police Command, CSP Olumuyiwa Adejobi, on Saturday, April 10, 2021.

Adejobi in the statement said that CP Odumosu gave the order on Friday while addressing Area Commanders and Divisional Police Officers in the command on the general security situation in the state and reviewing the anti-crime strategies of the command in order to sustain its feats on crime control.

What the statement from the Lagos State Police Command is saying

The statement from the Lagos Police Command partly reads, “In his bid to restore sanity and decency to the operations of the police along the ever-busy international route, Lagos/Badargy Expressway, the Commissioner of Police, Lagos State, CP Hakeem Odumosu, has ordered for the immediate dismantling of illegal roadblocks by the police teams from the Lagos State Police Command.

The police boss, while reacting to some complaints from the general public and some security reports on the police activities along the international route, ordered the Area Commanders and Divisional Police Officers whose jurisdictions fall along the Badargy Expressway; Festac and Area K, Marogbo, to withdraw their men from the illegal roadblocks and embark on aggressive motorised patrol and surveillance to police their areas and the route.

The Commissioner of Police confirmed that the illegal police roadblocks along the route have been condemned by the government, international bodies and interest groups and they must be dismantled without delay,” he said.

The Commissioner, however, noted that other police operatives from other police formations, outside the supervision of the Lagos State Police Command who operate along the route, would be contacted to adjust and do the needful to restore sanity to their operations.

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The CP Odumosu then warned the concerned Area Commanders to desist and take necessary action on full compliance with his order as any defaulter will be sanctioned accordingly.

 

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Business

Burial date for late Prince Philips announced

The Duke of Edinburgh will be laid to rest on Saturday, April 17, 2021, in a colourful but lowkey ceremony.

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Prince Philip, the late husband of Britain’s Queen Elizabeth, and the Duke of Edinburgh will be laid to rest on Saturday, April 17, 2021, in a colourful but lowkey ceremony by royal standards.

The Buckingham palace in making the announcement stressed that the funeral service will be held according to the Covid-19 restrictions guideline with the number of mourners to be limited to 30. This means that members of the royal family including the Queen would be expected to put on face masks.

The College of Arms, which handles most of the ceremonial aspects of the royal family’s work, had earlier confirmed that the late Prince Philip would not lie in state anywhere accessible to the public, which could have seen thousands of people lining up to view his coffin.

The funeral service for Philip, who died aged 99 on Friday, will be held at St George’s Chapel in Windsor Castle, and a national minute’s silence would be observed ahead of the ceremony. There will be no public access nor public procession beforehand with the royal family and UK government asking the public not to gather or leave flowers at the royal residences due to Covid-19 restrictions.

A Buckingham Palace spokesman also confirmed that Prince Harry, the Duke of Sussex, who had moved to Los Angeles after giving up royal duties, was planning to attend his grandfather’s funeral, but his pregnant wife Meghan won’t be present as she had been advised not to travel by her physician.

In case you missed it

  • It can be recalled that the death of Prince Philip, the husband of Queen Elizabeth II and the longest-serving consort of any British monarch before retiring from his public duties in 2017, was announced on Friday, April 9, 2021.
  • He died peacefully in Windsor Castle on Friday morning and had been married to the Queen for 73 years.
  • Since his death, tributes have been flooding in from the UK and all around the world for the duke, who had recently spent a month in two London hospitals, undergoing heart surgery and treatment for an infection, before returning in mid-March to Windsor Castle.

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