Majority Of Small Businesses Deserve Tax Breaks, Says Oyedele

Majority Of Small Businesses Deserve Tax Breaks, Says Oyedele....KINDLY READ THE FULL STORY HERE▶

The Federal Government is developing a framework aimed at providing tax relief for 95% of the informal sector within Nigeria’s economy.

During the closing session of the Presidential Fiscal Policy and Tax Reforms Committee in Abuja on Sunday, Mr. Taiwo Oyedele, the committee’s Chairman, disclosed this initiative. He outlined plans to achieve this relief by exempting businesses earning N25 million or less annually from various taxes that have historically hindered their growth.

“We believe that 95% of the informal sector should be legally exempt from all taxes, including withholding tax, company income tax, and payees on their staff,” Oyedele stated.

He emphasized the use of data to inform these decisions, highlighting that businesses earning N25 million or less currently do not have to pay company income tax or VAT. Oyedele stressed the importance of supporting individuals in the informal sector who are striving to earn a legitimate living and enabling their growth until they can afford to pay taxes.

The proposed reforms will target the top 5% of the informal sector, the middle class, and the elite for taxation. Oyedele noted that the committee is drafting laws to enact these changes in the fiscal policy and tax reform landscape of Nigeria, ensuring sustained reviews by successive governments to prevent regression.

Regarding compliance, Oyedele urged all stakeholders to cooperate fully with the government in implementing the new fiscal and tax policies for the collective benefit of citizens.

He also emphasized the need for leaders to lead by example in tax compliance, advocating for transparency and accountability in tax payment. Oyedele highlighted the committee’s efforts to review existing taxes complained about by Nigerians, aiming for their amendment or repeal through legislative processes.

The committee’s report will undergo the standard legislative process to receive full legal backing, Oyedele assured. He expressed confidence that the proposed reforms would lead to harmony in the fiscal system and improved efficiency and prioritization in public spending.

Additionally, Vice President Kashim Shettima reaffirmed President Bola Tinubu’s commitment to enhancing revenue generation in Nigeria while maintaining an investment-friendly business environment. Shettima assured the effective implementation of reform proposals and alignment with the nation’s economic agenda.

As the nation navigates its fiscal landscape, Shettima stressed the readiness of both federal and state governments to adopt the committee’s consensus, ensuring the revitalization of revenue generation for the benefit of all citizens.

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