Proposed income tax bill; Here is how much tax you might pay from your salary

Oct. 23, 2024 - Nairametrics

The Presidential Committee on Fiscal Policy and Tax Reform (FPTR) has submitted a proposed new Personal Income Tax Bill aimed at restructuring the country’s tax system, with a particular focus on high-income earners. Section 58: Refers to the Fourth Schedule, which specifies individual income tax rates.

Old tax calculationUnder the previous system, salary earners were allowed to deduct certain allowances before calculating their personal income tax. In addition, the current tax system also allows you to deduct statutory contributions such as pension contributions, National Housing Fund contributions, and life insurance premiums.

For individuals earning N250,000 monthly, the new tax system would result in a monthly tax payment of N27,500, slightly lower than the N29,100 payable under the current system...