Jonathan, Sambo, govs to pay tax on personal emoluments

The personal emolument of President Goodluck Jonathan and his vice, Namadi Sambo, will henceforth to be taxed under the new Personal Income Tax, PIT, Act 2011 (Amended).
Also to be taxed are state governors and their deputies.

President Goodluck Jonathan (middle); Governor Emmanuel Uduaghan of Delta State (left) and Governor Seriake Dickson of Bayelsa State during President Jonathan's stop-over at Warri Airport enroute Bayelsa State to inspect the explosion on Chevron platform, yesterday. Photo: Henry Unini.

Under the new law, members of the public who earn N3.2 million and above per annum are also to pay as high as 24 per cent as tax to the government.
On the other hand, low income earners who receive less than N300,000 per annum could pay only  one per cent in the new tax regime, according to Chairman of Joint Tax Board, JTB, and Chairman of the Federal Inland Revenue Service, Mrs. Ifueko Omoigui-Okauru, who briefed the press in Abuja, yesterday.
Her words: “With these new provisions, the President, Vice President, Governors and Deputy Governors will now pay tax on all their income as is done by every other tax payer.”
She described the new PIT as “a more equitable tax system” than the old and that the new rates were “realistic,” as high income earners would be made to pay heavy PIT, while the poor are relieved by being made to pay just a token.
The new income bands and their corresponding tax rates are: First N300, 000, 7 per cent; next N300,000,11 per cent; next N500,000,15 per cent; next N500,000, 19 per cent ; next N1.6 million, 21 per cent; and above N3.2 million, 24 per cent.
Until the PIT Act was amended last year, it operated on rates where those who earned N30,000 per annum were paying five per cent; next N30,000,10 per cent; next N50,000,15 per cent; next N50,000, 20 per cent and above N1.6 million, 25 per cent.
Mrs Omoigui-Okauru added, however, that all tax payers would receive a simple-to-administer Consolidated Relief and Allowances of N200,000 plus 20 per cent of gross income deductible allowance from each tax payer’s income before computing tax on the balance.
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