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As Nigerians await the National Assembly’s passage of the proposed tax reform bills, Taiwo Oyedele, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has listed some of the potential benefits of reforms.

The tax bills, which include Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service Establishment Bill, and Joint Revenue Board Establishment Bill, are aimed at addressing the nation’s tax system’s gridlocks such as multiplicity of taxes, fragmentation of revenue administration, and issues with the excessive tax burden on most vulnerable citizens, including small businesses and low-income earners.

The bills, when passed into law, are expected to exempt low-income earners from Pay As You Earn (PAYE), reduce PAYE tax for those earning a monthly salary of N1.7million or less, and keep value added tax (VAT) on food, healthcare, education, electricity generation and transmission at zero percent.

It will also ensure VAT exemption on transportation, renewable energy, CNG, baby products, sanitary towels, rent, fuel products, tax break for wage award and transport subsidy to low-income earners. It will also provide tax incentives for employers to hire more people incrementally than in the previous three years.

“The business person does not need the tax authority’s or government’s permission to claim their VAT. Once you pay VAT and you have the invoice on your own at the end of the month, you deduct that VAT from the VAT that you need to pay,” Oyedele said in a recent X Space, supported by BusinessDay.

Other benefits include: exemption of stamp duties on rent below N10 million, PAYE tax exemption for other rank and armed forces fighting insecurity, friendly tax rules for remote workers and digital nomads, as well as clarity on taxation of digital assets to avoid double taxation and allow deduction for losses.

For small businesses, the law is expected to ensure tax exemption threshold for small businesses with annual turnover of N25 million to N50 million, exemption from company income tax for small businesses (tax at 0%), and zero withholding tax deduction on business income of small businesses.

High income earners will also benefit from the bill when passed into law, as it seeks VAT exemption on purchase of real estate, clarity on taxation of benefit in kind and limit of taxable accommodation benefit to 20 percent of annual income, with an exemption of tax on sale of shares up to N150 million and gains not exceeding N10 million.

For the states which produce more zero-VAT-rated products, he emphasised that companies paying tax by consumption data will not affect them as the goal is to make Nigeria produce more than it consumes.

According to Oyedele, “We are collecting both consumption data and production data so that nobody is disadvantaged as a result of producing goods that are considered exempt or zero-rated.”

Oyedele further said, “People are buying sugar to do all manners of things. You know, people are buying fast-moving consumer products. They are paying for electricity. So, every state in Nigeria, regardless of what you’re producing, is also consuming.”

Source: https://businessday.ng/news/article/how-tax-reforms-will-benefit-smes-nigerians/?utm_source=auto-read-also&utm_medium=web

Good

NewDigitalWorld:
Source: https://businessday.ng/news/article/how-tax-reforms-will-benefit-smes-nigerians/?utm_source=auto-read-also&utm_medium=web

Make it simple and clean 22 inches monitor with ergonomic monitor and laptop tray.

Features 22 inches, FHD, 60hz, 4ms, HDMI, Bezeless 200k last call/whatsapp 0806.seven.seven.7.1.2931

Lagos only

Good

H

I think this is one of the best bills/policy this country has seen. We need more clarity on the returns from states. This one that Northern Governors have had sleepless nights since the bill was proposed...

ok

Believe this lies at your own peril. This bill will further impoverish the masses. How will a low income earner be exempted from tax when his employer is heavily taxed by the government?

Excellent!

Hhm

Leysco:
Believe this lies at your own peril. This bill will further impoverish the masses. How will a low income earner be exempted from tax when his employer is heavily taxed by the government?

His employer would remove the tax from his salary before paying him

The way it will benefit SMEs is collecting the taxes from large corporations and fund grants an loans to the SMEs.

With the benefit of hindsight, Tinubu was right to have said ‘Subsidy is gone’ on the first day in office. These northern elder guys would have foot dragged till now if he was negotiating and waiting for the best time to remove it.
Nigeria needs aggressiveness towards economic development!

Nigeria awaits tax passage for where? Govt no dey hear make them leave am. We dey wait for them for nepa and mobile inflation increase of services. But. E no concern me

We won't buy all this sugarcoating. The ultimate beneficiary of the reform will be Lagos, in line with the goal of granting it special status in the future.

AntiChristian:
That Tax reform Chairman Sabi hin job! BAT get eyes!

The only highlight in all said is exemption these exemption that, but

How is "exemption" a benefit

benefit must reasonate recieving from xternal

if the only reason why i am exempted from paying nepa dues in my face me i face you barracks, is because everyone agree na me poor pass ...am i suppose to be happy,how is -1 in the compound a benefit honestly it becoming clearer Tinubu naa overhype

Tax only benefit government.

Did the Notherners still want to remain in one place.

Hushpuppy20:
Did the Notherners still want to remain in one place.

🤔🤷

seguntijan:
[b]With the benefit of hindsight, Tinubu was right to have said ‘Subsidy is gone’ [/b]on the first day in office. These northern elder guys would have foot dragged till now if he was negotiating and waiting for the best time to remove it.
Nigeria needs aggressiveness towards economic development!

Can you @least hint us the benefit,

with the rate of policy somersault we have experienced under Tinubu, removing subsidy without insight consultation and contingencies plan makes it a wrong move no doubts

Mr Tinubu we no wan hear say you comot anything for that bill o
Some parasitic noise makers will kik against the bill now

zeyt:
We won't buy all this sugarcoating. The ultimate beneficiary of the reform will be Lagos, in line with the goal of granting it special status in the future.

No one care if you buy into it or not

Leysco:
Believe this lies at your own peril. This bill will further impoverish the masses. How will a low income earner be exempted from tax when his employer is heavily taxed by the government?

Dunce ! Everything is clear spelt out In this easy to read article, yet you chose to be daft and still ask silly questions .

benardtotti:
Dunce ! Everything is clear spelt out In this easy to read article, yet you chose to be daft and still ask silly questions .

STFU...

ok

mynd1:
STFU...

CERTIFIED DULLARD ! Can't process a simple article .

Paraman:
No one care if you buy into it or not

It seems you have problem with that and obviously you care enough to comment.

benardtotti:
Dunce ! Everything is clear spelt out In this easy to read article, yet you chose to be daft and still ask silly questions .

You will be the first to cry. Mumu