Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, has announced that the Federal Government is devising a system to offer tax relief to 95 percent of businesses in the informal sector.
Speaking at the committee’s closing session in Abuja on Sunday, Oyedele outlined the government’s strategy to exempt businesses earning N25 million or less annually from various taxes hindering their progress.
“We think that 95 percent of the informal sector should be legally exempted from all taxes – withholding tax, company income tax, even payee on their staff,” Oyedele stated.
He emphasized the importance of supporting small businesses striving to earn a legitimate living, highlighting the need to foster their growth without burdening them with taxes.
“We should allow them to be and support them to grow to a point where they can then have the ability to pay taxes,” he added.
Oyedele clarified that the proposed reforms would target the top five percent of the informal sector, the middle class, and the elite for taxation.
He stressed that the committee was drafting laws to implement necessary changes in the fiscal policy and tax reform landscape of the country.
Encouraging compliance, Oyedele called on all stakeholders to cooperate fully with the government in implementing a new fiscal and tax policy for the collective benefit of citizens.
He emphasized the need for leaders to lead by example in paying taxes promptly and correctly, in line with the law.
Regarding complaints about existing taxes, Oyedele assured that the committee had reviewed them and would present its report for legislative approval to give it full legal backing.
He expressed confidence that the proposed reforms would lead to a harmonized and efficient fiscal system focused on improving the lives of the majority living in poverty.
At the ceremony, Vice President Kashim Shettima reiterated President Bola Tinubu’s commitment to revitalizing revenue generation in Nigeria while ensuring an investment-friendly business environment.
“Our aim remains the revitalization of revenue generation in Nigeria while sustaining an investment-friendly and globally competitive business environment,” Shettima affirmed. He emphasized the government’s intent to create an administrative system that benefits all citizens without frustrating any sector of the economy.
