Senator Adams Backs Residence-Based Taxation for PAYE System

Senator Adams Backs Residence-Based Taxation for PAYE System

During a Senate debate on tax policy, Senator Adams stressed the importance of applying a consistent rule for Pay-As-You-Earn (PAYE) taxation.

 He argued that income tax should be tied to where individuals live, not where they work. Using common examples, he noted that many people are employed in the Federal Capital Territory (FCT) but reside in Nasarawa State, just as workers in Lagos often live in neighboring Ogun State.

 According to him, the foundational principle of PAYE is that tax liability should be determined by a person’s place of residence, ensuring fairness across state lines.