DEVELOPMENT
Individuals Earning Below ₦800,000 Annually Exempted, as Rep. Babajimi Benson Clarifies New Tax Law, Dismisses Public Misconceptions
The Member representing Ikorodu Federal Constituency, Lagos State, in the House of Representatives, Hon. Babajimi Benson, has clarified key provisions of Nigeria’s new tax law, stating that individuals earning below ₦800,000 annually are completely exempt from paying personal income tax.
Hon. Benson made this clarification during an appearance on Arise Television, amid growing public confusion and widespread misinformation surrounding the recently introduced tax framework. He emphasized that the law was designed to protect low-income earners while ensuring fairness and equity in the nation’s tax system.
The lawmaker, who currently serves as the Chairman of the House Committee on Defence and is also a member of the Ad-hoc Committee on Tax Reform, explained that the tax structure is progressive and not burdensome to ordinary Nigerians, contrary to circulating claims.
According to him, anyone whose annual income falls below ₦800,000 will not be required to pay any tax whatsoever. He further explained that even for individuals earning above ₦1 million annually, taxation does not apply to the entire income. Instead, the first ₦800,000 remains tax-free, while only the excess amount above that threshold is subject to taxation.
To illustrate, Hon. Benson noted that if an individual earns ₦1 million annually, only ₦200,000 will be considered taxable income, as the initial ₦800,000 is fully exempt under the law. This approach, he stressed, is intended to ease the financial burden on citizens and ensure that taxation is applied fairly, especially in the current economic climate.
He urged Nigerians to disregard misleading narratives about the new tax law and encouraged the public to seek accurate information from credible sources.
Hon. Benson reaffirmed the commitment of the National Assembly to enacting policies that promote economic justice, protect vulnerable citizens, and support sustainable national development.
The clarification comes at a time when discussions around taxation and cost of living remain a major national concern, with lawmakers and policymakers under increasing pressure to balance revenue generation with social welfare.