President Muhammadu Buhari Monday said the federal government proposed in the 2020 Finance Bill to exempt minimum wage earners.
He said the move was to reduce the impact of inflation on Nigerians, adding that the initiative would exempt minimum wage earners from the Personal Income Tax.
Buhari disclosed this in his speech delivered virtually by Vice President Yemi Osinbajo, on Monday, at the opening session of the 26th Nigerian Economic Summit Group Conference themed ‘Building partnerships for resilience’.
Osinbajo also explained that the Federal Government would buy locally assembled cars rather than imported foreign ones.
He said, “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.”
The President stated that it was clear that Nigeria must diversify the economy away from dependence on crude oil exports, speed up human capital development and improve infrastructure.
“Above all, our economy must be made more resilient to exogenous shocks,” he said. (Punch)