New personal income tax will help the poor

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Personal tax will help the poor

Personal tax will help the poor

The Federal Inland Revenue Service (FIRS) has said that the new Personnel Income Tax law will protect low income earners and make high income earners to would pay more taxes.

The Chairman FIRS, who is also the Chairman Joint Tax Board, Mrs. Ifueko Omoigui Okauru said this yesterday in Lagos at a press briefing on the Personal Income Tax (Amendment) Act, 2011.

She said this is possible because the new income tax table provides closer income bands and lower income tax rates leading to reduction in tax payable for low and middle income earners.

She said there is also the introduction of a presumption tax regime for the informal sector and other persons, whose incomes are not easily verifiable. By this provision, the tax authorities can now use presumptive basis for determining the tax liability of such taxpayers.

Meanwhile, Joint Tax Board has said that any person who engages in banking business and failed to render returns on demand within 7 days would pay a new penalty of N500,000 for corporate body and N50,000 for individual as against N5,000 and N500 being paid previously.

Okaaru said this is in line with new tax reform Act section 47 (3).

According to her the Act also stated in section 74(1) that any organization that fails to deduct/remit tax would pay 10 per cent of tax not deducted or remitted plus interest at Central Bank of Nigeria monetary policy rate.

She said  the reforms on personal income tax was to reduce burden and make money available in the hands of low and middle income earners and also aimed at bringing about more equity in the administration of personal income tax in the country.

 

In : Finance