Federal Government Plans Tax Relief for 95% of Small Businesses, Says Tax Reforms Committee Chairman

By Milcah Tanimu

The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, has revealed that the Federal Government is strategizing to provide tax relief to 95% of small businesses in the informal sector. Speaking at the committee’s closing session in Abuja on Sunday, Oyedele outlined a plan to exempt businesses earning N25 million or less annually from various taxes that have hindered their growth.

Oyedele emphasized that this initiative aims to support small-scale entrepreneurs striving to make a legitimate living. He highlighted that businesses falling within this income bracket would be relieved from taxes such as withholding tax, company income tax, and payee on their staff.

Furthermore, Oyedele explained that the proposed reforms would primarily target the top five percent of the informal sector, the middle class, and the elite for taxation. The committee is currently drafting legislation to enact these changes in the country’s fiscal policy and tax reform framework.

Addressing compliance, Oyedele urged all stakeholders to cooperate fully with the government in implementing the new fiscal and tax policy for the overall benefit of citizens. He emphasized the importance of accountability and urged leaders to lead by example in paying taxes promptly and correctly.

Regarding existing complaints about certain taxes, Oyedele clarified that the committee had examined taxes outlined in the constitution and called for their review. He emphasized that the committee’s report would undergo the legislative process to ensure full legal backing.

In conclusion, Oyedele stressed the importance of harmonizing taxes across all levels of government and increasing the threshold of exemption for small businesses and low-income earners. He emphasized that the ultimate goal is to create an efficient tax system that benefits the majority of the population living in poverty.

During the ceremony, Vice President Kashim Shettima reiterated President Bola Tinubu’s commitment to revitalizing revenue generation in Nigeria while maintaining an investment-friendly business environment. Shettima emphasized that the government’s goal is not to hinder any sector of the economy but to establish an administrative system that ensures the benefits of a thriving tax system for all citizens.