RSG Begins PAYE Deductions

Rivers State Governmment has announced the commecement of the deduction of PAYE (pay as you earn) based on the new Federal Income Tax Regulation.

It would be recalled that all deductions from workers’ salaries was halted November, 2012 by the state governor, Chibuike Amaechi with an assurance that implementation of the scheme would resume in February, 2013.

Consequently, the governor has issued directive to the Ministry of Finance to commence deductions from this month’s salary.

A statement by the Commissioner for Finance, Dr Chamberlain Peterside disclosed that the ministry will comply with the directive, amd commence the tax deductions as agreed with the workers, the Trade Union Congress and the Nigeria Labour Congress.

Dr Peterside explained that rather than making the usual 5 per cent flat deduction acros board, the new personal income tax system will be on a progressive and proportionate scale, whereby higher salary wage earners would be liable to pay more taxes than lower wage earners.

The Rivers Finance Commissioner, therefore, called for maximum coorperation from all stakeholders to ensure the successful implementation of the programme geared towards providing much needed infrastructure and improving the overall well-being of Rivers people.