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FG don announce one big reform for im tax policy, wey go exempt farmers, small businesses, and manufacturers from withholding tax.

Federal Government don exempt farmers, manufacturers, and SMEs from paying withholding tax

July 3, 2024

The Federal Government of Nigeria don announce one big reform for im tax policy, wey go exempt farmers, small businesses, and manufacturers from withholding tax.

Dis development na part of di broader fiscal policy and tax reforms wey dey aim to create better environment for these sectors.

Di Chairman of di Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, reveal di new policy changes for im X (formerly Twitter) handle.

Oyedele talk say, β€œAs part of the ongoing fiscal policy and tax reforms, a new withholding tax regime don approve. Di key changes introduced na to address di identified challenges and specifically include di exemption of small businesses from withholding tax compliance; reduced rates for businesses with low margins; exemptions for manufacturers and producers like farmers; measures to curb evasion and minimize tax avoidance and di ease of obtaining credit and utilization of tax deducted at source.”

Dis new policy go bring relief to small business owners and manufacturers wey don dey burdened by withholding tax compliance. By reducing di rates for businesses with low margins and exempting key sectors like agriculture and manufacturing, di government dey aim to stimulate economic growth and encourage business expansion.

Oyedele further explain say di reforms also include measures to curb tax evasion and enhance di ease of obtaining and utilizing tax credits deducted at source.

Additionally, di changes dey aim to reflect emerging issues, adopt global best practices, and provide clarity on di timing of deductions and di definition of key terms.

β€œThe approved regulation dey expected to be published in the official gazette in the coming days,” Oyedele add, highlighting di imminent official adoption of di new policy.

Withholding tax, wey dem introduce for Nigeria in 1977, originally design to serve as advance payment of tax on specified transactions. E aim to provide di government with steady revenue flow and to curb tax evasion. But over di years, e don become significant compliance burden for small businesses and manufacturers.

Oyedele, a tax expert, talk say, β€œE design to provide di government with regular revenue flow and to serve as a means of curbing tax evasion.”

Di exemption of farmers, small businesses, and manufacturers from withholding tax dey see as positive step towards fostering more business-friendly environment for Nigeria. E dey expected to provide much-needed financial relief and encourage investment and growth in these critical sectors.

For more news https://naija102.com/lagos/blog/

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