1
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4
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33(2) |
(2)“For the purposes of this section, “gross emoluments” means wages, salaries, allowances (including benefits in kinds), gratuities, superannuation and any other incomes derived solely by reason of employment”. |
This is to avoid ambiguity in interpretation |
Substitute-
“……….solely by reason of employment” in accordance with section 3 (2) (d)” for “….solely by reason of employment”. |
2 |
18 |
106A |
1. “The Minister may, on the recommendation of the Service, make regulations generally for giving full effect to the provisions of this Act.
2. Without prejudice to the generality of the provisions of subsection (1) of this section, the Minister may, on the recommendation of the Service and with the approval of the Federal Executive Council, by regulation amend, vary, or add to the tax rates and rates of allowances under this Act”. |
It is a legislative matter for the National Assembly.
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This should be deleted |
3 |
19 |
Sixth Schedule (Section 37)
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1. A consolidated relief allowance shall be granted on income at a flat rate of 40 per cent per income.
2. After the relief allowance has been granted in accordance with paragraph 1 of this Schedule, the balance of income shall be taxed as specified in the following tax table–
Income to be taxed & Per cent Rates of Tax
First N30,000 - 1 per cent
Next N30,000 - 5%
Next N50,000 - 15%
Next N50,000 - 20%
Next N2,840,000 - 25%
Above N3,000,000 - 30% |
There is a need to give a clearer meaning of income subject to relief.
The tax rate at 30% is still too high and the income band too many for beneficial impact on the taxpayers. |
The word “chargeable” should be inserted before “income”.
The maximum rate should be 25% and the income band compressed to five instead of six.
60,000 @ 5%
150,000 @ 10%
500,000 @ 15%
1,290,000 @ 20%
above 2M @ 25% |
