Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has outlined key proposals aimed at stimulating Nigeria’s economic growth, including the elimination of Value Added Tax (VAT) on essential goods and exports.
In a session with the Organised Private Sector, monitored virtually by PUNCH on Friday, Oyedele emphasized that these reforms would reduce the tax burden on businesses, simplify tax rules, and enhance Nigeria’s competitiveness.
“The Tax Reform Bills will create a more conducive business environment. They will achieve this by reducing the tax burden, simplifying tax rules, and harmonizing taxes,” Oyedele stated.
Key proposals include increasing the exemption threshold for small businesses from N25 million to N50 million in annual turnover, exempting them from company income tax, and removing withholding tax deductions. Small businesses will also be able to submit simplified financial statements instead of audited accounts.
Additionally, the creation of the Office of Tax Ombud will ensure tax disputes are resolved within 14 days. Oyedele assured that the VAT reform would not negatively affect state revenues, as improved compliance through e-invoicing would maintain fiscal balance.
Other proposed reforms include the elimination of the minimum tax for loss-making companies, the introduction of a top-up tax for multinationals, and the reduction of the company income tax rate from 30% to 25% over the next two years.
A 4% development levy would also harmonize and phase out earmarked taxes, while incentives for business restructuring and reorganization would further boost the economy.
Oyedele concluded that these reforms would create a more sustainable and competitive business environment in Nigeria, stimulating economic growth.
The Chairman of the Organised Private Sector of Nigeria, Francis Meshioye, and the Director-General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, also voiced strong support for the reforms, highlighting the need for efficient implementation to address long-standing issues of multiple taxation and ensure economic prosperity for all.
