Jonathan and governors to pay tax on wages

The Federal Inland Revenue Service (FIRS) has announced plans to commence tax deductions from the official income of the president, vice president, state governors and … Continue reading Jonathan and governors to pay tax on wages



The Federal Inland Revenue Service (FIRS) has announced plans to commence tax deductions from the official income of the president, vice president, state governors and their deputies.

The chairman of the Joint Tax Board and FIRS, Ms Ifueko Omogui, made this known at a news conference organized by the Joint Tax Board in Abuja on Monday, where she stated that the initiative is part of  the new provisions of the Personal Income Tax (PIT Act 2011) which was recently amended. The Act, she said is “targeted at increasing the level of compliance of tax administration amongst Nigerians.”

Under the new law, members of the public who earn N3.2 million and above per annum are also to pay as high as 24 per cent as tax to the government.

“With these new provisions, the President, Vice President, Governors and Deputy Governors will now pay tax on all their income as is done by every other tax payer” explained Ms Omogui.

She described the new PIT as “a more equitable tax system” than the old and that the new rates were “realistic,” as high income earners would be made to pay heavy PIT, while the poor are relieved by being made to pay just a token. Mrs Omoigui-Okauru , however added that all tax payers would receive a simple-to-administer Consolidated Relief and Allowances of N200,000 plus 20 per cent of gross income deductible allowance from each tax payer’s income before computing tax on the balance.

She said that the agency is also working out modalities to address issues of multiple taxation system usually encountered at the local government levels. She also hinted that the board would introduce a “Presumptive Tax Regime for the informal sector and other persons, whose incomes are not easily verifiable and added, “by this provision, the tax authorities can now use presumptive basis for determining the tax liability of such tax payers.”

The joint tax board through the FIRS is also using the amended personal income tax to reduce multiple taxation system especially at the state and local government levels.

The tax boss noted that income accruing from taxes in the country is channelled to key sectors of the economy which calls for urgent attention, therefore the FIRS and the joint tax board has vowed not to relent in its mandate of revenue generation for government.