The presidential fiscal policy and tax reforms committee, has proposed that businesses that make annual turnover of not more than N50 million should be exempted from payment of Value Added Tax (VAT).
Chairman of the committee, Taiwo Oyedele, who disclosed this in a television interview, said the committee has proposed significant tax exemptions for small businesses in Nigeria.
He restated the government’s commitment to supporting small businesses by raising the turnover threshold for tax exemptions.
Oyedele said under the new proposals, businesses with an annual turnover of N50 million or less will be exempted from taxes, including value-added tax (VAT), withholding tax, and company income tax (CIT).
Currently, small businesses with a turnover of N25 million or less benefit from these tax exemptions, but the proposed changes will extend the threshold to N50 million.
The committee chairman said the adjustment is expected to cover 97 per cent of small businesses in Nigeria, providing much-needed relief for entrepreneurs struggling to stay afloat in a challenging economic climate.
“We’ve exempted small businesses from tax, from those withholding taxes, no VAT, almost all the taxes, no VAT, no withholding tax, no companies income tax. So, the context of the law we have, as we speak now, is N25 million turnover a year.
“But in our proposals, the laws we are passing to the National Assembly in the next few days or weeks, we’ve proposed that to go up to N50 million,” he said.
Oyedele said the exemptions, which form part of the broader fiscal and tax reforms, also include incentives for private-sector employers.
