Federal Government Plans Tax Exemption for Small Businesses

The Federal Government has unveiled a new initiative aimed at supporting small businesses and reducing their tax burden. The plan seeks to exempt businesses earning N25 million or less annually from certain taxes, in a bid to foster growth and sustainability.
Chairing the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele revealed this development during the committee’s closing session held in Abuja on Sunday. Oyedele emphasized the government’s commitment to providing tax relief to 95 percent of the informal sector.
“We believe that 95 percent of informal sector participants should be legally exempted from various taxes such as withholding tax, company income tax, and payee on their staff,” Oyedele stated.
The proposed reforms target the top five per cent of the informal sector, along with the middle class and elite, for taxation purposes. Oyedele highlighted ongoing efforts to draft new laws that will facilitate these changes in the fiscal policy and tax reform landscape of the nation.
Furthermore, he stressed the importance of ensuring the sustainability of these reforms across successive administrations. “We don’t want this whole effort to go down the drain after one or two years,” Oyedele remarked.
In terms of compliance, Oyedele urged all stakeholders to collaborate with the government in implementing the new fiscal and tax policy. He underscored the need for accountability, urging leaders to lead by example in fulfilling their tax obligations.
The proposed tax exemptions for small businesses signify a significant step towards fostering economic growth and supporting entrepreneurship in Nigeria.