The Federal Government of Nigeria has announced a major overhaul of the country’s tax reforms, with a significant exemption that is set to benefit millions of Nigerians.

According to the government, individuals earning below ₦1 million annually will be exempted from paying taxes. This move is aimed at alleviating the financial burden on low-income earners and stimulating economic growth.

The tax reforms bill, which was recently signed into law, is designed to promote fairness, simplicity, and transparency in the country’s tax system. The government believes that the exemption will help to reduce poverty and inequality, while also increasing tax compliance among high-income earners.

The Minister of Finance, Budget and National Planning, explained that the government’s decision to exempt low-income earners from taxes was based on the need to provide relief to the most vulnerable members of society.

“We recognize that the current tax system can be burdensome for low-income earners, and this exemption is designed to provide them with some relief,” the Minister said.

The tax exemption is expected to benefit millions of Nigerians, including civil servants, entrepreneurs, and small business owners. The government has assured that the exemption will not negatively impact the country’s revenue generation, as it will be offset by increased tax compliance among high-income earners.

The tax reforms bill has been hailed as a major victory for low-income earners, who have long complained about the burden of taxes on their meager incomes. The government’s decision to exempt them from taxes is seen as a bold move to address poverty and inequality in the country.

As the government continues to implement the tax reforms, Nigerians are eagerly awaiting the impact of the exemption on their lives. With millions of people set to benefit from the exemption, it’s clear that this move has the potential to transform the lives of many Nigerians.