Political office holders in Nigeria are to pay more tax, following the amendment of the Personal Income Tax Act (PITA), the Federal Inland Revenue Service (FIRS) said on Monday.
Under the amended Act, all allowances of political office holders will now be taxed, unlike the previous system under which the emoluments of political office holders were exempted from taxation.
Those to be affected under the new dispensation include the President, Vice-President, State Governors and their deputies as well as Ministers.
FIRS Chair Ifueko Omogui-Okauru announced the development while briefing journalists in Abuja on the major provisions of the new tax law.
Nigeria’s President Goodluck Jonathan signed the amended PITA into law 14 June.
“Further to the amendment of the Act, there is a review of income exempted from tax under the Act, with inclusion of income from bonds issued by government and corporate entities in tax exempt income and the removal of official emoluments of the President, vice-president,
governors and deputy governors from income exempted from tax.
“With these new provisions, the President, VP, governors and deputy governors of states will now pay tax on all their income as is done by every other taxpayer,” the FIRS Chair said.