Taiwo Oyedele, Chairman, Presidential Committee on Fiscal Policy and Tax Reforms has unveiled the benefits of the tax reform bills to Micro Small and Medium Enterprises (MSMEs) in the country.
This is even as he underscored the necessity of restructuring the country’s tax system to promote economic growth and reduce tax pressures on small businesses.
He made this known over the weekend during a stakeholder engagement on tax reforms organised by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) in Abuja.
The event, themed “Understanding the Tax Reform Bills: Benefits and How MSMEs Can Maximise Tax,” brought together key industry stakeholders, offering business owners an opportunity to seek clarification and gain insights into the provisions of the tax reform bill.
“To address these issues, the committee proposed significant reforms, such as eliminating Value-Added Tax and withholding tax for businesses with annual turnovers below N100 million,” he said.
“Additionally, salaries up to N100,000 per month would be exempted from Pay-As-You-Earn (PAYE) tax.
”These measures aim to reduce the administrative burden on small enterprises, allowing them to focus on growth and innovation.”
Oyedele also emphasised the importance of data-driven policymaking, citing collaborations with organisations like the Faith Institute to gather credible data on the challenges faced by MSMEs.
According to Oyedele, the strength of a nation is reflected in how it treats its most vulnerable citizens.
He advocated for reforms that provide small businesses with the space to thrive without undue tax pressures.
“These reforms are designed, not merely to generate revenue, but to create a more equitable and supportive environment for small businesses, thereby laying a sustainable foundation for Nigeria’s economic growth and development,” Oyedele said.
On his part, Charles Odii, SMEDAN’s Director-General (DG), disclosed that the tax reform bill will eliminate regulatory bottlenecks and boost MSMEs’ growth.
Odii said that once passed into law, the bill would remove multiple taxation and exempt businesses with annual earnings below N100 million from key tax obligations.
“We have 39,654,385 nano, micro small and medium enterprises (MSMEs)in Nigeria, and the first step towards ensuring their success is sensitisation,” he said“Many small business owners are unaware that if this tax reform bill is passed, they will no longer be required to pay VAT, CIT, PAYE, and several other taxes.”
The DG further said the reform aims to encourage business formalisation and expansion by removing excessive taxation fears.
“When small businesses flourish, the entire economy benefits. This reform will remove unnecessary regulatory bottlenecks, allowing MSMEs to thrive,” Odii said.
Abdulrashid Yerima, president of the Nigeria Association of Small and Medium Enterprises (NASME), also lauded the proposed reforms, emphasising that they address key challenges faced by small businesses, particularly multiple taxation and arbitrary levies by regulatory agencies.
“Our members have long struggled with excessive taxation at different levels; import duties, levies on turnover, and arbitrary charges from state and local governments,” Yarima said.
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