In a significant move aimed at bolstering the informal sector of Nigeria's economy, the Federal Government is poised to implement sweeping tax reforms, offering relief to a staggering 95% of small businesses. Mr. Taiwo Oyedele, the chair of the Presidential Fiscal Policy and Tax Reforms Committee, revealed this groundbreaking initiative during the committee's closing session in Abuja on Sunday.
Under the proposed system, businesses earning N25 million or less annually would enjoy exemptions from various taxes that have historically impeded their growth. Oyedele emphasized the importance of supporting individuals striving to earn a legitimate living in the informal sector, asserting that such enterprises should be allowed to flourish without the burden of excessive taxation.
Highlighting the data-driven approach informing their decisions, Oyedele stressed that businesses falling within the specified income bracket would be exempted from withholding tax, company income tax, and payee on their staff. This move aims to provide a conducive environment for small businesses to thrive and eventually contribute to the tax base as they grow.
Moreover, Oyedele outlined that the proposed reforms would target the top five percent of the informal sector, the middle class, and the elite for taxation, ensuring a fair and equitable distribution of fiscal responsibilities.
Addressing concerns regarding compliance, Oyedele called upon all stakeholders to cooperate fully with the government in implementing the new fiscal and tax policy, emphasizing the imperative of accountability and adherence to the law. He underscored the importance of leadership by example, urging elected and appointed officials to demonstrate transparency and integrity in their tax obligations.
Furthermore, Oyedele revealed that the committee had identified and reviewed taxes outlined in the constitution, calling for their revision to align with current economic realities. He affirmed that the committee's recommendations would undergo the legislative process to receive full legal backing, ensuring their effective implementation.
In a statement echoed by Vice President Kashim Shettima, President Bola Tinubu's commitment to revitalizing revenue generation in Nigeria was reaffirmed. Shettima emphasized the government's dedication to fostering an investment-friendly business environment while ensuring that tax reforms benefit all citizens.
With these bold tax reforms on the horizon, the Federal Government aims to not only alleviate the burden on small businesses and low-income earners but also enhance the efficiency and effectiveness of tax collection, ultimately driving sustainable economic growth and improving the quality of life for all Nigerians.
0 Comments