The federal government has signed into law a new bill proposed by the Presidential Fiscal Policy and Tax Reforms Committee, exempting manufacturers and small businesses from paying withholding tax.
This move aims to boost economic growth and ease the tax burden on key sectors.
Mr. Taiwo Oyedele, Chairman of the Committee, confirmed the development, stating that the proposal had been sent to the National Assembly for approval and had now been signed into law.
The committee also recommended significant tax reforms, including the elimination of over 60 taxes at national and sub-national levels, leaving only eight essential taxes: Income tax, value-added tax, property tax, custom duties, excise tax, stamp duties, special levy, harmonised levy.
Furthermore, the committee proposed the establishment of the Nigerian Revenue Service as the central tax agency, with sub-national departments, to streamline tax collection and eliminate over 100 different collection agencies.
This reform aims to create a more business-friendly environment, encourage economic growth, and improve tax administration in Nigeria.
