FG Workers Demand PAYE Reduction Amid High Tax Burden
Federal government employees in Nigeria are voicing significant concerns over the substantial Pay As You Earn (PAYE) tax deductions from their monthly salaries, especially amidst the nation’s current economic challenges. Many civil servants argue that these high tax rates are unjustifiable given their modest earnings and the escalating cost of living.
Ese Williams, a civil servant, highlighted the disparity by noting that a level 15 officer earning less than ₦400,000 monthly faces nearly ₦60,000 in tax deductions. Similarly, Ibrahim Abbas expressed frustration, suggesting that recent federal policies, from fuel subsidy removals to currency adjustments, disproportionately impact government workers. Aliu Sule added that the lack of corresponding infrastructure and services further exacerbates the dissatisfaction with these tax rates.
In response to these grievances, the Presidential Fiscal Policy and Tax Reforms Committee, led by Taiwo Oyedele, has introduced proposed tax reform bills aimed at alleviating the tax burden on workers. Under these reforms, individuals earning up to ₦1 million annually (approximately ₦83,000 per month) would be exempt from PAYE tax, benefiting about one-third of workers in both public and private sectors. Additionally, those earning up to ₦20 million annually would see progressive tax reductions, while the new minimum wage earners and slightly above would be fully exempted.
These proposed reforms aim to enhance workers’ disposable income, reduce the cost of essential goods and services, and stimulate job creation. The government emphasizes that these measures are designed to improve the welfare of workers across the country.
As discussions continue, federal employees remain hopeful that these reforms will be implemented promptly, leading to a more equitable tax system that reflects their economic realities.
Source : Swifteradio.com
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