The Presidential Fiscal Policy and Tax Reforms Committee in Nigeria is set to review national withholding tax laws, aiming to exempt small businesses from these taxes. Committee Chairman Taiwo Oyedele revealed this during a recent stakeholder engagement session, emphasizing the importance of trade associations and NGOs in national development.
Key Points:
- Committee considerations include a new national tax and fiscal policy framework.
- Harmonization of taxes, levies, revenue administration, and reporting is on the agenda.
- The establishment of a single national revenue window is part of the proposed reforms.
- Plans include consolidating and redrafting major tax laws for clarity.
- Introduction of a new withholding tax regime with lower rates for active income, specifically targeting SMEs.
- Emphasis on not taxing capital, investment, production, or poverty.
- Commitment to repeal existing taxes and exempt more individuals who should not bear tax burdens.
- Plans to revamp the tax agent’s function to address corruption cases.
Conclusion: The proposed tax reforms in Nigeria aim for a fairer and more business-friendly environment. With a focus on exempting small businesses and ensuring compliance, the government seeks sustainable economic growth and diversification while addressing challenges faced by NGOs and civil societies. These reforms align with the goal of achieving self-sufficiency in critical areas such as food security, energy, and health. The committee’s initiatives aim to foster economic development and prudent financial management.
