The Personal Income Tax Act (PITA) has been signed into law by President Goodluck Jonathan. It is the first major amendment to the income tax law since 1979.
The bill sent to the National Assembly in 2004, was sent to the President for assent after passing through both chambers of the sixth National Assembly.
A statement from the Federal Inland Revenue Service (FIRS) said the new act would provide more disposable income to the lower income earners following the amendment of the income tax table and adjustments in the applicable income tax incremental bands, which brings it in line with current income levels.
The Act also simplified the compliance processes by consolidating the reliefs and allowances stipulated in the Act and lowering the burden on low income earners as well as widening the tax base by bringing in a huge number of potential taxpayers, especially in the informal sector, into the tax net.
The act according to the statement also removes obsolete, unrealistic and outdated reliefs and allowances associated with the former Act, replacing the previous reliefs and allowances with enhanced consolidated reliefs and allowances
Meanwhile, the President has pledged that his administration will continue to implement measures, polices and programmes that will make Nigeria more attractive destination for foreign investors.
Jonathan spoke yesterday when he had an audience with a delegation of Polish investors led by a former President of Poland, Mr. Aleksander Kwasniewski.
The President noted that with the ongoing liberalisation and deregulation of various sectors of its economy, Nigeria was full of new opportunities for discerning and knowledgeable investors.”Previously, government alone monopolised some sectors of the economy. Now all those sectors are open to private investors. We believe that this is the best way forward for our country. Our policy is to welcome all credible investors and we will continue to do all that we can to create the right conditions for them to thrive,” the President said.
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Jonathan signs Personal Income Tax into law