Full List Out! FG Unveils 50 Items To Enjoy Tax Breaks And Special Reliefs Under New Fiscal Laws

The Federal Government has announced that 50 categories of items, services, and taxpayers will enjoy various exemptions and reliefs under Nigeria’s new tax laws set to take effect on January 1, 2026.

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, disclosed this in a statement released on his (Twitter) handle on Monday.

Oyedele explained that the revised tax framework is designed to provide significant reliefs for low-income earners, small businesses, and average taxpayers, while promoting fairness and economic growth.

He noted that the reforms aim to simplify compliance and ensure that vulnerable groups are shielded from excessive taxation.

Below is the full list of items and categories eligible for tax exemptions and reliefs under the new law:

Personal Income Tax (PAYE)

1. Individuals earning the national minimum wage or less — exempt.

2. Annual gross income up to ₦1.2 million (≈ ₦800,000 taxable income) — exempt.

3. Reduced PAYE for earners with annual gross income up to ₦20 million.

4. Gifts — exempt.

Allowable Deductions and Reliefs for Individuals
5. Pension contributions.
6. National Health Insurance Scheme.
7. National Housing Fund contributions.
8. Interest on loans for owner-occupied homes.
9. Life insurance or annuity premiums.
10. Rent relief — 20% of annual rent (up to ₦500,000).

Pensions and Gratuities – Exempt
11–13. All pensions, gratuities, and retirement benefits compliant with the Pension Reform Act; compensation for job loss up to ₦50 million.

Capital Gains Tax (CGT) – Exempt
14–19. Sale of owner-occupied houses, personal effects under ₦5m, up to two private vehicles per year, share gains below ₦150m, reinvested share proceeds, and charitable or religious institutions.

Companies Income Tax (CIT) – Exempt
20–25. Small companies (turnover ≤ ₦100m), labeled startups, 50% salary increase deductions, 5-year tax holidays for agriculture, and venture capital gains in startups.

Development Levy – Exempt
26. Small companies exempt from 4% levy.

Withholding Tax – Exempt
27–28. Small companies, manufacturers, and agricultural firms exempt from deductions on income and supplier payments.

Value Added Tax (VAT) – 0% or Exempt
29–45. Basic food items, rent, education and health services, pharmaceuticals, diesel, petrol, solar equipment, agricultural inputs, disability aids, transport, electric vehicles, baby products, sanitary items, and land/buildings.

Stamp Duties – Exempt
46–50. Electronic transfers below ₦10,000, salary payments, intra-bank transfers, government securities, and stock/share transfers.

Oyedele emphasized that these measures are part of ongoing efforts to create a simpler, fairer, and more growth-friendly tax system in Nigeria.