According to the bill, companies will be allowed an additional 50 percent deduction in their relevant years of assessment for costs incurred during the 2023 and 2024 calendar years.
The bill added that the qualifying expenses range from wage increases, transportation subsidies, or transport allowances granted to workers, whose gross monthly earnings are brought up to N100,000 or less.However, the provision stipulates that any additional salary increase granted to employees earning above N100,000 monthly will not be eligible for the tax deduction.
“A company shall be entitled to an additional deduction of 50 per cent in the relevant years of assessment in respect of costs incurred in 2023 and 2024 calendar years on the following,” the document reads. “ wage awards, salary increases, transportation allowance or transport subsidy granted to a low-income worker, which bring the gross monthly remuneration of the worker up to an amount not exceeding N100,000.00; provided that any additional award or salary increase to an employee earning above N100,000.
On October 14, Taiwo Oyedele, chairman of the presidential committee on fiscal policy and tax reforms, said the personal income tax of NigeriansOyedele said people earning less than N1.5 million below would be exempted from the personal income tax .the economic stabilisation bills seeking amendment of tax policies.