Pat Stevens/
The Presidential Committee on Fiscal Policy and Tax Reforms, led by Chairman Taiwo Oyedele, has introduced a Personal Income Tax Calculator to help Nigerians assess how proposed tax reforms may affect their earnings.
This tool enables individuals to compare their current tax obligations with those under the new Nigeria Tax Bill, offering a clear understanding of potential changes to their take-home pay.
The Nigeria Tax Bill suggests adjustments to personal income tax bands and rates, aiming to create a more equitable tax system.
By integrating reliefs into the tax brackets and rates, many taxpayers with basic education would be able to calculate their taxes with ease.
To determine how these proposed changes might impact your personal income, you can utilise the Personal Income Tax Calculator available on the Fiscal Reforms website.
This tool simulates the tax payable under both the current law and the proposed changes, allowing for a side-by-side comparison.
Steps to Use the Calculator:
- Access the Tool: Visit the Personal Income Tax Calculator on the Fiscal Reforms website.
- Input Your Gross Annual Income: Enter your total annual earnings before any deductions.
- Review the Calculations: The calculator will display your tax obligations under both the current and proposed tax laws, breaking down the amounts for clarity.
- Analyze the Impact: Compare the results to understand how the proposed reforms may affect your net income.
It’s essential to note that your actual tax payable may be lower if you have tax-deductible contributions, such as pension funds or National Housing Fund contributions. These deductions can reduce your taxable income, thereby decreasing your overall tax liability.
Tax policies can significantly impact personal finances. Utilising tools like the Personal Income Tax Calculator empowers you to make informed decisions and plan accordingly.
For more detailed information and to access the calculator, visit the Fiscal Reforms website.
By staying informed and proactive, you can better navigate the evolving tax landscape and its implications for your personal income.
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