Centerstrit

HOW THE PERSONAL INCOME TAX CHANGES WILL AFFECT YOU - PART 3

Q5 - Why was the Consolidated Relief Allowance (CRA) and Personal Relief removed? Does it not amount to giving a relief with one hand and taking it back with the other?

A5 - No. One of the objectives of the tax reforms is simplification. The impact of the CRA and personal relief have been incorporated into the tax table such that the overall goal of exempting low income earners and reducing taxes for middle income earners is achieved. By integrating the reliefs into the tax brackets and rates, many taxpayers with basic education would be able to calculate their taxes with little or no assistance thereby achieving the dual objectives of lower tax burden and tax simplification.

Q6 - How about statutory deductions such as Pension and National Housing Fund contributions?

A6 - Statutory deductions, now referred to as eligible deductions, are still applicable under the new tax bills. These are contributions under the National Housing Fund, National Health Insurance Scheme, Pension Reform Act, interest on loans for developing an owner-occupied residential house, annuity or premium paid for life insurance, and rent relief up to N200,000 per annum.

Q7 - Where can we get more information about the tax reform bills?

A7 - Please visit our website fiscalreforms.ng and social media accounts for more information including copies of the tax bills..

HOW THE PERSONAL INCOME TAX CHANGES WILL AFFECT YOU - PART 2

Q3 - But the proposed table only exempts N800k per annum, which is just about N67k per month, meaning that minimum wage earners of N70k per month will still pay tax.

A3 - No. Besides the N800k p.a., which is exempt from tax, there is a rent relief of up to N200k p.a., which together will exempt individuals earning up to N1m per annum (about N83k per month). This is particularly beneficial to low-income earners. Also, the new tax bands and rates have been designed to avoid a situation where individuals earning slightly more than the exemption threshold are taxed to an extent that makes them worse off than a person whose income is within the exemption threshold. For example, a person earning N30k per month is exempt from tax, while a person earning N30,001 per month will pay about N500,, leaving the latter with a net of N29,50,0, which is N500 worse than the person earning N30,000. Under the tax bills, this problem has been addressed, as everyone will be eligible for the first tax-free bracket.  

Q4 - The tax rate for the second band seems quite steep, moving from 0% to 15%. Why not consider a lower rate for the second band?

A4 - By comparison, the second band under the bills, which is to be taxed at 15%, is currently being taxed at a marginal rate of 21%, even after all reliefs and allowances. So, while the 15% may appear steep from 0% for the first band, it is lower compared to the current tax table. The real impact for a person earning about N3m p.a., equivalent to the aggregate of the first and second brackets, is a lower effective tax rate of 10% compared to about 12% under the current tax table.

HOW THE PERSONAL INCOME TAX CHANGES WILL AFFECT YOU - PART 1

Q1 - What is the thinking behind the proposed changes to the current tax table of personal income brackets and rates?

A1 - The current tax table was introduced in 2011. Due to high inflation and lack of review, the structure has resulted in “fiscal drag" where many low income earners have been pushed to the top tax bracket over time. This means that an individual earning just N400k a month is paying the same top marginal income tax rate as a wealthy individual earning say N20m per month. Therefore, the tax table has become regressive rather than progressive as it was originally designed. Also, the current personal income tax regime does not encourage formalisation given that the effective top tax rate on companies is nearly double that of enterprises which also encourages arbitrage in some cases between the two income tax regimes.

Hence, the proposed changes seek to address these issues and simplify the system by incorporating current reliefs and allowances into the bands and rates to achieve an overall lower effective tax rate for the majority of workers.

Q2 - There is a general perception that workers will pay more tax under the bills. Is this true?

A2 - This perception is not correct. Individuals earning about N1.7m or less per month will pay lower PAYE tax under the bills while those earning the new minimum wage and slightly more will be fully exempted. These thresholds will result in over 90% of workers in the public and private sectors paying lower taxes while high income earners will pay slightly more in a progressive manner up to 25% for the ultra high networth individuals.

So this is the $200 million investment...

Which bank gave the loan?

*Politics of Media attacks on Lagos - Calabar Coastal Road*

- 100 yrs ago, the entire place was land owned by the Oniru family.

- ⁠Over a century, the beach was lost to the ocean till the erosion started threatening Victoria Island till the early 2000s

- ⁠2003 - BAT engaged Hitech to build the “Wall of Lagos”, reclaim the land, and build Eko Atlantic. Reached an agreement with Oniru before the project on ownership of the land to be reclaimed.

- ⁠2007 - the idea of the coastal road was birthed to start from Eko Atlantic.

- ⁠2007 - Landmark bought property backing the “ocean” which is e basically land that is based on plan will be reclaimed. A clearly marked fence that ends just before the water that is based on a plan will be reclaimed.

- ⁠2017 - Landmark went to his “backyard and created a football pitch” on a land that he didn’t buy and was collecting money.

- ⁠2018 - Landmark continued expanding on land that they didn’t buy, building shanties and charging money.

- ⁠2019-20 - Landmark grew bolder and was selling shops space on the beach to businesses. I have to emphasize, on the beach front, that he did not buy.

- ⁠Around 2019/20, Oniru beach also opened up.
- ⁠Around 2021, LaCampagne also joined them.

- ⁠2023 - Lekki Deep seaport was completed, opening up additional economic activity on the coastal line.

- ⁠2023 - BAT was elected. Coastal Hitech revisited their old friend and proposed to start phase 1 that links Eko Atlantic to Deep Seaport.

- ⁠2024 - Project started. Road is supposed to pass through Landmark’s “backyard that they didn’t buy.

- ⁠FG gave notice to everyone, including Onirus (that owned the land before it was lost to the sea) and LaCampagne.

- ⁠Everybody knew this day would come, so everybody Jejely vacated land that they knew they did not buy. Landmark said lailai and started media rounds.

- ⁠2024 - Landmark claimed they have a $200m investment on the beach.

- ⁠Umahi visited and conceded that rather than have 100m corridor, the one at his side will be 50 meters, and gave Landmark engineering tips to retain the tourism.

- ⁠Landmark said the coastal road should pass in front of the property, not the back. The front is a 2 lane road. The coastal road is supposed to be 10 lanes. With 100 meters corridor. Landmark’s proposal will actually affect the land he bought, if accepted.

- ⁠Last weekend, Umahi carried on as planned. Destroyed the shanties on the beach worth “$200m”.

A brief summary.

Pls note

If you have any unemployed person, tell them to go and register at the National Directorate of Employment (NDE) office near them Nationwide immediately. Registration is for 3 weeks only.

Offices/Address Phone number

Lagos No. 7, Barkisu Iyede Street, Onike Yaba, Lagos 08033014555; 08183184445

Oyo state - Federal Secretariat Complex, Ikolaba Area, Ibadan 08065310946; 08028218223

Ogun Federal Secretariat Complex, Oke Omosa, Ibara, Abeokuta 08035660075; 08082428818.

Osun No. 6, Adebimpe Lane, Opp. Plant and Pilars College, Ago-wande, Osogbo 08056677202; 08098027202.

Ekiti Beside UBA, No. 91 Ajilosun Street, Off Ikere road, Ado Ekiti 08060105270

Ondo Federal Secretariat Complex, Igbatoro road,Akure 08034171011; 08066554611.

Abia Employment House, Aba road, Amuzuta old Umuahia, P.M.B. 7247, Umuahia, Abia State 08038777048

Adamawa Behind former Ministry of Works & Housing, Off Sir Kashim Ibrahim way, Yola 08020911708

Akwa Ibom Federal Secretariat Complex, Abak road, Uyo 08095695077,
07066864747

Anambra 35, Nnamdi Azikwe Avenue, Amawbia, Akwa 08035888922; 08184764587

Bauchi Off Gombe road, Behind Chief Magistrate Cort, kofar Idi, Bauchi, Bauchi State 08038380704

Bayelsa No. 2, Asingbi Street, Off Imgbi road, Amarata, Yenagoa 08032756363; 08183334531

Benue Federal Secretariat Complex, Makurdi 08033153598

Borno Federal Secretariat Complex,Kano Jos road, Maiduguri, Borno State 08022626357

Cross River Federal secretariat Coplex, Muhammed Murtala High way, 3rd Floor, Left wing, Calabar 08034732083, 08056411518

Delta Federal Secretariat Complex, Okpanam road, Asaba 08032360078; 07028304975

Ebonyi Former Ministry of Women Affairs, Unity Square, Off Ezza road, GRA, Abakaliki

Enugu CCB Building, 1st Floor, 28, Okpara Avenue, Enugu 08059409960; 08099786443

Edo 222A Upper Mission road, Before Ewah road Junction, New Benin, Benin City 08063241240, 08023304530

Gombe New Federal Secretariat Complex, Behind Bauchi Motor Park, Gombe 08035076677; 08083433766

Imo Federal Secretariat Complex, Port Harcourt road, Owerri 08033370393, 08092341187

Jigawa Federal Secretariat Complex, 2nd Floor, Sani Abacha road, Dutse 08099370224, 08055282947

Kaduna No. 5A Yakubu Gowon way, Kaduna 08035952001, 08023759990

Kano After ARTV 44/48, Hotoro, Maiduguri road, Kano 08036827944, 08054605942

Katsina No. 1, Justice Muhammed Bello road, GRA Round About, Katsina 08033847925; 08153657886

Kebbi No. 19,, Murtala Muhammed way, Tudun wada, Birnin Kebbi 08036129284; 08124869880

Kogi Kunama Crescent, After Edgedrive Hotel, GRA, Lokoja 08036517350

Kwara Federal secretariat Annex, Fate road, Ilorin 08055834677, 07033368086.

Nasarawa No. 18, Jos road, Behind Natson Petrol Station, Off Sandaji Hotel road, Lafia 08036367880, 08026362500

Niger Ladi Kwali road, Off IBB road, Minna 08035958975

Osun No. 6, Adebimpe Lane, Opp. Plant and Pilars College, Ago-wande, Osogbo 08056677202; 08098027202.

Plateau No. 5 Naraguta Road, GRA 930105, Jos
Rivers Federal Secretariat Complex, 8th Floor, Left wing, Aba road, Port Harcourt 08039383247; 07017083004

Sokoto No. 7, Dendo road, Off Ibrahim Dasuki rioad, Sokoto 08036255444; 08088674908

Taraba No. 2, Agadah Attah drive, Jalingo 08036837304, 08186207519

Yobe Federal Secretariat Complex, Gassua road, Damaturu 07038368112; 08023722366

Zamfara No. 3, Yahaya Abdularim road, Opp. Tanking Ruwa, Sabon Gari, Gusau 07082235403; 08180208078

NDE FCT office, Abuja Skill Centre Complex, Kuduru, Bwari,

This information will be useful

Abia Geometric Power Limited: state the facts: 24 hours electricity.

1: The firm brought the first high efficiency combined emergency power station in 2001 for Abuja.

2: This experience led to the Aba Integrated Power Project. In 2006, GP in collaboration with the past FG not Obasanjo signed a MOU to address the power needs of Aba.

3: Aba’s IPP was scheduled to enter into commercial operations in the 2nd quarter of 2014.

4: All the former Govs of Abia State had contributed and supported the actualization of this project.

5: Prof Barth Nnaji is the owner and the Chairman of the company. As at the time, Ikpeazu was celebrating his 58th Birthday, he told everyone at that lecture that he spent $600m.

6: Vandals stole their equipment in the course of this installation.

7: We must also remember Dr Okonjo Iweala and former World Bank President Dr. Wolfohson for their support.

8: Finally, FG not Tinubu will commission the plant when our former APC man, Dr. Alex Otti is the Gov.

9: Alex Otti will still come back home.

Here is an update on the promises made by President Bola Tinubu to Nigerians in order to mitigate the effects of the removal of fuel subsidy.

Still on our forex issue: You guys should read up on “The forex scandal of 2013”. A financial scandal that involved banks colluding with forex traders for at least a decade to manipulate exchange rates on the forex market for their own financial gain.

Backstory :- Banks and their counterparts were “front running” client orders of forex and rigging the foreign exchange benchmark price for decades.
Investigations revealed transcripts of electronic chatrooms in which senior currency traders discussed with their competitors at other banks, the types and volume of the trades they planned to place, and manipulated price. The chatrooms had names such as "The Cartel", "The Bandits’ Club", "One Team, One Dream" and "The Mafia.

Conclusively, On 12 November 2014, the United Kingdom's Financial Conduct Authority (FCA) imposed fines totaling $1.7 billion on five banks

On the same day the United States Commodity Futures Trading Commission (CFTC) in coordination with the FCA imposed collective fines of $1.4 billion against the same five banks for attempted manipulation of, and for aiding and abetting other banks’ attempts to manipulate, global foreign exchange benchmark rates to benefit the positions of certain traders.

On 20 May 2015, the five banks pleaded guilty to felony charges by the United States Department of Justice and agreed to pay fines totaling more than $5.7 billion.

Several other traders were also jailed.

No country sits idly and watch people destroy its forex market and currency.

There is no way, people will try the nonsense they are currently trying here in USA without being picked up immediately by the FBI and subsequently jailed.
I don’t think there is any financial regulator in the world as ruthless as the USA SEC.
When people say “you don’t stabilize Naira” by guns, bans or fine, they are simply ignorant, or trying to blackmail the regulators.

CBN, EFCC, NFIU, over to you.

I think the CBN governor Yemi Cardoso should ban the sale of forex outside the confines of a bank. If you want foreign exchange. Go to the bank.